Washington — Securities and Exchange Commission Chairman Christopher Cox says the heretofore-unregulated credit swap market is in need of regulatory oversight. 

A lack of transparency in the $55 trillion credit swap market is widely blamed as factor in igniting the current financial meltdown. Speaking at roundtable event about modernizing the SEC’s disclosure system, Cox called for a swift response from legislators.

“The regulatory black hole for credit default swaps is one of the most significant issues we are confronting in the current credit crisis, and it requires immediate legislative action,” he said. “Manipulation in this completely unregulated and hidden space can drive prices in the regulated market for securities. That is why I believe it is important for Congress to act now to provide for regulatory oversight of the credit default swaps market.”

Source: Securities and Exchange Commission

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