Dodd-Frank derivatives regulations continue to challenge corporate treasurers. Companies that use over-the-counter (OTC) derivatives to hedge their risks cite higher costs and increased administrative burdens, according to recent surveys, and a significant portion see different regions' regulations resulting in a fragmented market.
But the biggest concern for U.S. companies that hedge with derivatives is the possibility that regulators will require non-financial end users to post margin on their derivatives positions.
"Over three and a half years after the passage of Dodd-Frank, we're still operating under regulatory uncertainty," said Tom Deas, chairman of the International Group of Treasury Associations and vice president and treasurer at Philadelphia-based FMC Corp.
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