U.S. Rep. Peterson releases OTC derivative draft bill

WASHINGTON (Reuters) - The chairman of the U.S. House of Representatives agriculture committee on Friday released a draft bill on regulation of over-the-counter derivatives, with another House panel expected to vote next week on similar legislation.

Rep. Collin Peterson, a Democrat, said his draft attempts "to reflect the concerns of end users while bringing oversight and transparency to OTC trading."

The $450-trillion OTC derivatives market is largely unregulated and is widely blamed for amplifying the financial crisis last year that hammered economies worldwide.

The House Financial Services Committee has set a working session beginning on Wednesday for OTC derivatives legislation as part of a broad effort to reform U.S. financial regulation.

"I believe this draft and the feedback we receive from it in our committee will help us move forward quickly to enact much-needed legislation," Peterson said in a statement.

The draft addresses OTC derivatives clearing, trading, capital and margin requirements, and position limits, he said.

President Barack Obama has proposed regulations for the market involving both the Commodity Futures Trading Commission, overseen by Peterson's committee in the House, and the Securities and Exchange Commission, overseen by the financial services committee chaired by Representative Barney Frank.

The two panels have been negotiating for months to find legislation that both can agree on.

(Reporting by Kevin Drawbaugh and Christopher Doering; Editing by Padraic Cassidy)