SEC reviews investment companies' use of derivatives

Mary Schapiro, chairman of the Securities and Exchange Commission, said the agency is reviewing the use of derivatives. "It's appropriate to engage in a more thorough review of the use of derivatives by [exchange-traded funds] and mutual funds given the questions surrounding the risks associated with the derivative instruments underlying many funds," Schapiro said.

more at http://www.nytimes.com/2010/03/26/business/26sec.html?ref=business