A bill that goes beyond the Obama Administration\u2019s policy outline for energy and other trading was introduced September 22 by Senator Jack Reed (D-RI). The Comprehensive Derivatives Regulation Act of 2009 would cover all derivative trading, not just swaps, and thus be more encompassing, according to the author. The administration and the Commodities Futures Trading Commission have been outlining plans the last month to centralize energy trading, limit the \u201cpositions\u201d traders can take, and increase the cost of trades if done outside a central clearinghouse. The move is part of re-regulating the market instigated after the financial implosion \u201cthat occurred in 2008 at AIG and Lehman Brothers,\u201d according to the senator\u2019s description. The bill language authorizes the Securities & Exchange Commission to require clearing of other standardized security derivatives now or in the future to protect the financial system. Traders, including utilities, fear that centralized regulation would require increased collateral for trades. Thus, they claim, there would be less financial ability to carry out development plans because funds would be set aside in financial institutions to back trades. A natural gas hedge, for instance, using an unregulated swap, has a physical and a financial end of the transaction. A supplier goes through a utility which puts the hedge through an over-the-counter swap counterparty. In turn, the utility and the supplier get the market price. Derivatives can be far more complicated.