Congress likely to clarify Dodd-Frank "end-user" derivatives exemption.
In the eyes of the business community, however, the proposed rule issued by the Commodity Futures Trading Commission (CFTC) doesn't offer a wide enough exemption. That has led to the introduction in the Senate of the Business Risk Mitigation and Price Stabilization Act, which passed the House by a vote of 370-24. Democrats and Republicans in the Senate are cosponsoring the bill.
Yet neither the House nor the Senate bill exempts financial end-users, as the Coalition for Derivatives End-Users, the business lobbying coalition, has pressed for. That would include pension funds and commercial businesses with financial affiliates that use derivatives primarily to hedge business risks and whose derivatives use doesn't jeopardize financial stability.
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|Article Type:||Brief article|
|Date:||Oct 1, 2012|
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