Friday, July 12, 2013 6:42 pm
News Summary: Non-US derivatives oversight delayed
By The Associated Press
MIDDLE GROUND: The Commodity Futures Trading Commission voted 3-1 to stagger the effective dates for the policy. The delay marks a middle ground between Chairman Gary Gensler, who wanted to extend the CFTC's regulation to overseas markets now, and Wall Street banks, which opposed extending its reach.
BAD BETS, BIG RISK: A derivative is an investment that's based on the value of an underlying asset, such as oil or corn or dollars. Bad bets on risky derivatives, and lax regulation of them, were a leading cause of the 2008 financial crisis.