CMC Margin Comments

Yesterday, CMC submitted a letter to the CFTC and the Prudential Regulators on the Capital and Margin Requirements proposed rules. In addition to our own letter, we are signing on to a Coalition for Derivatives End-Users letter on this subject, also to be submitted today.

One of the main concerns highlighted in our letter is that the margin requirements are too restrictive in what types of collateral can be accepted. We explain why the margin requirements proposed rule will be detrimental to US businesses and impair their international competitiveness. We also urge regulators to focus on regulating systemic risks rather than trying to reduce all manner of general risks in the commodities and financial marketplace.

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