US industry warns against unitended consequences of OTC rules; Mandatory clearing, hefty margins would reduce end-user hedging

摘要

Washington-Speakers at a US Senate committee hearing June 4 cautioned that while reform of over-the-counter derivatives regulation is necessary, some proposals being floated in Washington could harm the very end-users Congress is trying to protect. Addressing the Senate Committee on Agriculture, Nutrition and Forestry, banking and other financial industry officials generally supported the idea of centralized clearing for standardized derivatives, enhanced reporting requirements for traders and increased authority for the Commodity Futures Trading Commission to police fraud and manipulation.