Plans To Regulate Trading Rejected

The 48-50 negative vote by US legislators is a blow to the hopes of many who seek increased regulation of financial institutions and corporates in the wake of the Enron affair.

Senators were thought to have been influenced by lobbying from banks and traders such as Dynegy.

Federal Reserve Chairman Alan Greenspan and US Treasury Secretary Paul O'Neil are also on record as being against legislation. O'Neil previously told lawmakers that he had 'serious concerns' that the proposal would damage the $100 trillion global derivatives market.

A disappointed Dianne Feinstein, who tabled the proposal as an amendment to an energy production and conservation bill, said that 'if you trade on-line there is no oversight and there is no anti-fraud and no anti-manipulation authority.'

She remains determined to attach the amendment to another bill.