Senators Urge Regulators to Move Cautiously on Derivatives Rules
News Article
February 9, 2011
A bipartisan group of U.S. senators urged regulators implementing derivatives measures under the Dodd-Frank Act to move cautiously so the rules can be "completed without unintended consequences." In a letter signed by 13 members of the Senate Banking and Agriculture committees, warnings were issued against "overly prescriptive rules" that might push market participants abroad and dated yesterday.
"If the major overhaul of our derivatives market is implemented hastily, agency rulemakings could have negative effects on our economy at a time when we can least afford it," the lawmakers said.
The lawmakers also urged regulators to exempt "end-users" -- non-financial firms that use derivatives to hedge business risk -- from margin requirements stipulated by Dodd-Frank. Failing to do so would "blatantly disregard" the law's intent, they said.
Cross References
Dodd-Frank Act, Title VII