WASHINGTON, April 17 (Reuters) - The U.S. Securities and Exchange Commission proposed rules for banks trading in security-based swaps, a type of derivative, the regulator said on Thursday, laying out how to keep records of their trades and how to report them.
The 2010 Dodd-Frank Act to reform Wall Street brought regulation to the previously unsupervised $690 trillion global swaps market, with the Commodity Futures Trading Commission in charge of the bulk of the market.
The SEC oversees a narrowly defined subset, called security-based swaps. Large Wall Street banks such as Bank of America, JPMorgan Chase & Co and Citi are the largest dealers of both types of swaps.
The Commission voted on its proposal on Wednesday, giving market parties 60 days to comment.
While the CFTC has largely completed writing its new rules to regulate the market, the SEC still needs to complete a similar exercise, and the rules that it proposed this week are only small part of the overall new rulebook. (Reporting by Douwe Miedema; Editing by Richard Chang)