The Derivatives Debate.

The article offers views on how derivative securities should be treated in the financial-regulation reform bill of U.S. Senator Chris Dodd. Professors Thomas Jackson and David Skeel suggest trading of derivatives on public exchanges, creating a clearinghouse to assess credit-worthiness of both parties and removing special treatment during bankruptcy that led to bailouts. Commodity Futures Trading Commission chairman Gary Gensler adds that it should address the interconnection between financial institutions and regulate derivatives as commodity futures.