My prayers have been answered. As I and a host of others have been urging, the Congress is moving ahead smartly to set new rules for trading previously unregulated financial products. The main feature of the bill wending its way through the legislative process is for trades in derivatives, securitized debt, mortgage backed assets, collateralized loans and credit default swaps to be made in open markets with settlement in open clearing mechanisms. The objective is to make these trades totally transparent (see my blogs of October 5 and 9).

The Chairman of the House Financial Services Committee, Barney Frank, has worked hard and effectively to get this bill through the Congress. To emphasize that the intention is complete transparency, Frank said that even for certain hedge trades that will not be subject to trading on the open market, “…there will be no more hidden trades where we don’t know the price.”

Let the sunshine in. Hats off to Barney for a job well done.