SEC plots derivatives overhaul

US regulator the Securities and Exchange Commission (SEC) plans to open up the $600 trillion (£371 trillion) swap trading market under a plan put forward yesterday to implement parts of the Dodd-Frank financial reforms. Institutional investors would get the chance to see the price of swaps trades, either on a traditional exchange or a new facility created under the reforms. The SEC’s rules would apply to a narrow slice of the market that includes products such as equity swaps and hedges against default on corporate bonds.