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On January 28, 2009, Rep. Collin Peterson (D–Minn.), chairman of the U.S. House of Representatives Committee on Agriculture (the “Committee”), distributed an updated draft bill that would, among other things, prohibit credit default swap transactions unless the buyer of protection owns or otherwise has financial exposure to the reference asset specified in the swap.  The bill would also require all over-the-counter derivatives transactions to be settled and cleared through a central clearinghouse registered with the U.S. Commodity Futures Trading Commission (the “CFTC”) or through certain other regulated clearing organizations, with the potential for exemption by the CFTC of transactions that satisfy certain criteria, including that they are highly customized and infrequently traded. https://www.cadwalader.com/resources/clients-friends-memos/draft-us-law-seeks-to-regulate-credit-default-swaps