U.S. Treasury swaps plan needs more teeth-US SEC

WASHINGTON, Sept 22 (Reuters) - The top U.S. securities regulator said on Tuesday that the White House plan to regulate the $450 trillion private derivatives market needed to be strengthened to minimize regulatory arbitrage.

Securities and Exchange Commission Chairman Mary Schapiro said swaps needed to be regulated like their underlying assets and that Congress needed to give market regulators tools to enforce anti-fraud authority.

"Treasury's proposal would retain the SEC's anti-fraud authority over all securities-related swaps, but unfortunately does not currently provide the tools needed to adequately police all these swaps," Schapiro said in testimony to be delivered to Congress. (Reporting by Rachelle Younglai; Editing by Lisa Von Ahn)