Financial Rules Targeting Large Banks Said Adverse for End-Users

摘要

Those who conduct commercial hedging in the natural gas business have made it clear that they are exempt from requirements that will restrict over-the-counter trading as the new financial reform law is implemented. Now, there is a mounting concern that proposed regulations that target financial institutions could also have unintended consequences for end-users using the derivatives markets to guard themselves against fluctuations in prices, interest rates and exchange rates. End-users are those who engage in commercial hedging, which is not considered a risk to the financial system. They can include any type of firm in the natural gas business, such as producers, marketers, or distributors, such as pub-lic or private gas systems.