Search
 

Smaller Companies Get Swaps Pass

Regulators exempt derivatives end-users from strict oversight.

By Jesse Hamilton and Steven Sloan, Bloomberg | Updated on April 19, 2012

Farm co-ops, small banks and the local gas company may be toasting U.S. regulators whose votes yesterday freed them from strict Dodd-Frank Act oversight of dealers in the $708 trillion global swaps market.

Those and other types of firms rely on trading and holding swaps — financial instruments they use to hedge risk or speculate. Because of a 2010 proposal that any company entering into swaps worth more than $100 million in a year could be treated as a highly regulated dealer, so-called end users fought an effort to include them in a new system of capital and collateral requirements designed to avoid a repeat of the 2008 financial crisis.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Why Companies Are Racing to the U.S. Debt Market

Why Companies Are Racing to the U.S. Debt Market

Caleb Mutua & Jeannine Amodeo |

Borrowing costs have become compelling, as markets are already pricing in expectations for reduced interest rates. And several external factors could reverse that trend.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.