The U.S. House of Representatives passed an amendment to its financial reform bill, the precursor to the Dodd-Frank Act, proposing to limit banks' collective stake in any clearinghouse to 20% (DW, 12/11/09). [Clearinghouse ownership restrictions are now mandated by law, but exactly how they will work is still up for debate as the Securities and Exchange Commission and Commodity Futures Trading Commission have both issued slightly different proposals, each offering two choices for public comment. Both plans suggest either a 20% cap on any one owner's stake plus a 40% collective cap, or a 5% cap on any one owner's stake. The proposals are out for comment with final rules expected in January.]
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