Rep. Barney Frank, D-Mass. has introduced a bill that would merge the Securities and Exchange Commission and the Commodity Futures Trading Commission to form the Securities Derivatives Commission.

According to the bill, the SCD will consist of five commissioners appointed by the President and with the advice and consent of the Senate, and one of the commissioners will be designated by the President as chairperson. Also, no more than three of the appointed commissioners are allowed to be members of the same political party. Each commissioner will be appointed to a five-year term except that a commissioner may continue to serve after the expiration of such term until a successor is appointed.

The proposed SDC will also include a Markets and Trading Division, which will have over sight of market conduct and utilities, an Issuers and Financial Disclosures Division, which will have oversight of the issuance of securities, and an Enforcement Division, responsible for the enforcement of all rules of the Commission.

In a statement, Frank, who introduced the legislation with Rep. Mike Capuano, D-Mass., said “the existence of a separate SEC and CFTC is the single largest structural defect in our regulatory system.”

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