Derivatives Markets Transparency Act Develops a Hole

A loophole, that is. The House Agriculture Committee has posted a draft of Collin Peterson's Derivatives Markets Transparency Act of 2009 along with an outline of the bill. The bill mandates a CFTC-approved central clearing party for OTC derivatives transactions, but unlike the draft I blogged about last week, this draft gives the CFTC the power to exempt transactions from using the central clearing party.