Non-cash collateral in derivatives bill -Rep Frank

WASHINGTON Oct 14 (Reuters) - The latest version of a draft bill in the U.S. House of Representatives to regulate the $450-trillion over-the-counter derivatives market would allow the use of non-cash collateral in meeting margin requirements related to central clearing, said a key lawmaker on Wednesday.

House Financial Services Committee Chairman Barney Frank said the change to the draft was meant to respond to concerns among derivatives end-users about posting collateral if they have to make wider use of central clearinghouses that demand more collateral to clear transactions.

Frank made his remarks at the opening of a committee bill drafting session. He also said the latest version of the draft would not empower the Commodity Futures Trading Commission or the Securities and Exchange Commission to ban abusive swaps. (Reporting by Kevin Drawbaugh; Editing by James Dalgleish)