Derivatives losses of at least $2 billion at JPMorgan Chase& Co. show the need for extending Dodd-Frank Act swapregulations to overseas trades, said Gary Gensler, chairman of theU.S. Commodity Futures Trading Commission.

“We've had another stark reminder of how trades overseas canquickly reverberate with losses coming back to the United States,”Gensler said today in a speech at a Financial Industry RegulatoryAuthority conference in Washington. “The bank here in the U.S. isabsorbing these losses” on trades conducted at JPMorgan in London,he said.

JPMorgan, Goldman Sachs Group Inc. and other U.S. banks havesaid Dodd-Frank rules designed to bolster oversight of thederivatives market will hurt their ability to compete withforeign-based rivals if the rules are applied to overseas offices.The debate over the reach of Dodd-Frank overseas is among the mostcontroversial elements of the 2010 financial overhaul.