Walls street banks and derivative ban proposed

Senate aides inched closer Friday to combining separate bills that would establish oversight of the vast market for derivatives, an effort central to the ongoing push to revamp the nation’s financial regulations.

The Senate banking and agricultural committees, which share jurisdiction over parts of the derivatives market, recently passed different versions of legislation with a common goal — bringing transparency and supervision to a market that has remained largely devoid of regulation.

Legislation seeks to ban big Wall Street banks from trading in derivatives. It also requires nearly all derivative contracts to be traded on public exchanges and approved by a separate body called a clearinghouse.