The House Financial Services Committee is expected to begin voting today on derivatives and other regulatory reform legislation. The Regional Bond Dealers Association is urging committee chairman Barney Frank, D-Mass., to ensure the derivatives bill will allow state and local governments to enter into over-the-counter derivatives contracts, regardless of their size or sophistication.

“We believe that all municipalities should be free to enter into derivatives contracts with any regulated counterparty, regardless of the size of the municipality’s discretionary investments,” RBDA co-chief executive officers Michael Decker and Mike Nicholas wrote in a two-page letter sent to Frank yesterday. “This would be in the spirit of current law.”

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