The top U.S. derivatives regulator took a step toward preventingWall Street banks from evading the Dodd-Frank Act and shifting someof their trading overseas.

The Commodity Futures Trading Commission (CFTC) votedunanimously Monday to propose a requirement that broadens whenbanks' overseas divisions must meet U.S. collateral standardsdesigned to curb risks in the $700 trillion swaps market.

The agency decided to act after Wall Street's biggest dealersstopped backing some of their offshore affiliates or guaranteeingtheir trades. That meant lenders were freed from parts ofDodd-Frank that were intended to reduce risk and increasetransparency in the market.

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