The chairman of the Federal Reserve, Alan Greenspan,suggested that United States futures markets could operate with less Government oversight.
Industry leaders praised the speech and said it should influence Congress later this year when it started rewriting the laws on futures and the Commodity Futures Trading Commission, which oversees brokerage firms and exchanges.
Profits from derivatives, have increased the earnings of large banks and are a factor in the financial sector's overall growth this decade, Mr. Greenspan said.
The derivatives market was estimated to have a notional value of $70 trillion last year, ''a figure that doubtless is closer to $80 trillion this year,'' he said. Of that, United States commercial banks hold about 25 percent of the contracts and securities houses another 15 percent, he said.
Futures exchanges and brokerage firms have long sought to pare back regulations.
The exchanges contend that if over-the-counter, or privately negotiated, derivatives function well without regulation, the exchanges should operate under minimal regulation as well.
The exchanges and brokerage firms will get another chance to push for looser reins when Congress begins rewriting the Commodity Exchange Act.
Representative Thomas Ewing, an Illinois Republican who is chairman of the House agriculture subcommittee that oversees the commodity commission, said Mr. Greenspan's remarks would bolster ''our efforts to streamline and reduce Federal regulation of the futures markets.''
