Last Friday, when business journalists everywhere were drooling over the SEC's announcement of its lawsuit against Goldman Sachs, Senate Agriculture Committee Chair Blanche Lincoln (D-AR) released her aggressive bill (.pdf) to regulate the derivatives market. Leaks advertised the bill as the most serious crackdown to date on Wall Street's profit center for making and trading complex securities. Its actual text includes some very controversial provisions, but the bill isn't quite as aggressive as some early reports indicated. For example, Lincoln provides regulator flexibility in determining how aggressively to implement some of her changes.
After the Senate Banking Committee passed its financial reform bill, Chairman Dodd (D-CT) indicated that its derivatives section was just a placeholder for a new version some of its members intended to produce. Since those senators have yet to deliver an amended version of that section, there's talk that Lincoln's bill could take its place. Here are some of its more important highlights (.pdf):
Real Time Reporting
One of the most significant changes would require almost all derivatives trades to be reported real-time. Currently, many over-the-counter transactions are not reported to the SEC.