End Users Community Gets Some Reassurances

Remember when CMC (and many others!) argued that our markets and our market participants were not the ones that caused the financial crisis?

Instead, we pointed to the impeccable performance record of exchanges and clearinghouses.  In a battle of letters, Fed Chairman Ben Bernanke acknowledged that some end users may not present a systemic risk – though he continues to draw a distinction between financial and nonfinancial end users.  This could bode well for CMC’s effort on capital and margin requirements as well as the swap dealer definition.

“Nonfinancial end users appear to pose minimal risks to the safety and soundness of covered swap entities and to U.S. financial stability.” – Bernanke Letter to Stabenow

Meanwhile, Rep. Owens (D-NY)  is working on a bipartisan letter advocating for commercial end users.  The letter, which CMC is supporting, is slated to be sent to Chairman Gensler later this month.


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