Christopher Cox, chairman of the Securities and Exchange Commission, urged that regulators should be given oversight of the credit default swaps as New York's governor put forward a plan to regulate the $62 trillion (€42 trillion) market yesterday.

Cox said at a hearing before the Senate Committee on Banking, Housing and Urban Affairs on the turmoil in the credit markets: “The $58 trillion credit default swap market is double the amount that it was in 2006 and is regulated by no one. Buyers of CDS do not have to own the underlying debt or bond and can short without any restriction so providing regulation will enhance investor protection.”