“That’s been the law since we passed it,” Frank said about a Dodd-Frank derivatives provision that requires derivatives prices to be made public, CNBC News reports. “They would allow these prices to continue to be secret.”
Frank also said that he was against the cap fee instituted by Dodd-Frank.
“Unfortunately, that was the only way to get the bill through,” Frank said, according to CNBC News. “I’m afraid the cap is here to stay.”
In March, the U.S. House of Representatives passed two derivatives rules. One mandate would lend an exemption to inter-affiliate swaps, and the second mandate would ease capital-reporting requirements.
Frank stressed the importance of transparency in the derivatives market, which some have labeled as murky and shadowy.
“The lack of transparency on derivatives would be a step backwards,” Frank said, according to CNBC News. “There’s a notion that the more we regulate, the worse off we’ll be. I think it’s the less we regulate.”
Frank also claimed that the lack of transparency and “unregulated, irresponsible” derivatives trades contributed to the financial crisis, The Hill reports. The bills will move on to the Senate for discussion and a vote. Frank criticized those who are trying to water down the derivatives measures.