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The Chairmen of several U.S. financial regulatory agencies outlined a series of steps that can be taken to provide better oversight for Over-the-counter (OTC) derivatives dealers.

Appearing before the Senate Banking, Housing, and Urban Affairs Committee Monday, Gary Gensler, the Chairman of the Commodity Futures Trading Commission articulated the need to lower systemic risk, prevent fraud, and increase transparency in the OTC derivatives market.

“If we are not fully able to regulate the dealers, we will not give the American public the comfort they need,” explained Gensler.

The hearing comes shortly after President Barack Obama’s call for sweeping regulatory reform, which aims to establish a regulatory body to oversee the entire financial system, provide transparency for large private investment funds, and supervise agencies that offer credit-ratings.

When asked by Sen. Mike Johanns (R-Neb.) if the proper regulation would have prevented the failure of insurance giant American International Group (AIG), Gensler responded, “I think that a number of features here would have slowed down and maybe even have stopped [AIG’s collapse].”