Coalition for Derivatives End-Users News Release


August 1, 2012


Business Group Praises Bipartisan Introduction of Bill Preventing Costly and Unnecessary Regulation of Main Street Risk Management

Washington – The Coalition for Derivatives End-Users today issued the following statement on the introduction of legislation by Senators Mike Johanns (R-NE), Mike Crapo (R-ID), Jon Tester (D-MT), Herb Kohl (D-WI), Pat Toomey (R-PA) and Kay Hagan (D-NC) to exempt non-financial end-user companies from margin requirements applied to their derivatives trades:

“The bill introduced today by Sens. Johanns, Crapo, Toomey, Tester, Kohl and Hagan helps main street businesses invest more funds in expanding their operations and creating jobs by freeing them from the costly and needless requirements that are threatened by Dodd-Frank Act margin regulations.   The bill is about protecting companies that use derivatives to manage risk, not create it.  The Coalition for Derivatives End-Users, and the hundreds of businesses it represents, applauds this bipartisan legislation and looks forward to Senate action that mirrors its overwhelming passage in the House earlier this year,” said Michael Bopp, Counsel to the Coalition for Derivatives End-Users.

The Coalition for Derivatives End-Users includes the following major U.S. business associations:

  • Agricultural Retailers Association
  • Business Roundtable
  • Commodity Markets Council
  • Financial Executives International
  • National Association of Corporate Treasurers
  • National Association of Manufacturers
  • The Real Estate Roundtable

CFTC to Hold Open Meeting to Consider Two Final Rules

The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Wednesday, April 18, 2012, at 9:30 a.m., to consider two Final Rules:

  • Final Rule on Further Definition of “Swap Dealer,” “Security-Based Swap Dealer,” “Major Swap Participant,” “Major Security-Based Swap Participant,” and “Eligible Contract Participant.”
  • Final Rule on Commodity Options.

Get more information here.

CMC Discusses Senate Agriculture Committee Roundtable on MF Global

On this week’s policy call, CMC staff reported to our members on the Senate Ag Committee’s MF Global roundtable held on Tuesday, April 3.  CMC was one of only four groups invited to participate at this select event to discuss our thoughts and recommendations regarding potential legislative/ governmental regulatory / self-regulatory fixes to minimize the chances of another MF Global – like situation from occurring again.

Based on numerous prior discussions within our membership and with outside groups, CMC offered ten recommendations that followed from three core principles.  Click here to read CMC’s recommendations.

The event was moderated by former CFTC Commissioner Mike Dunn, and the other groups invited to share their thoughts were the National Futures Association, the Futures Industry Association and the Commodity Customers Coalition.

Financial Regulatory Reform: 2012 Report Card

In advance of tomorrow’s 6th Annual Capital Markets Summit, the US Chamber released the Financial Regulatory Reform: 2012 Report Card today. The Report Card evaluates the progress being made by Congress and regulators to achieve modern, well-regulated, fair, transparent, and vibrate capital markets.  It looks both at the implementation of Dodd-Frank, as well as other key regulatory reform issues, broken down into four areas critical to ensuring the vitality of our markets:

  • Protecting the Diversity of Capital Formation
  • Reforming Corporate Governance
  • Ensuring U.S. Competitiveness Through Financial Regulatory Reform
  • Preserving the Integrity of Accounting and Auditing

In addition to grading the four areas, the report also provides suggestions on how regulators and Congress can bring up the grade to support capital formation system that benefits consumers, investors, and job creators.   The US Chamber is calling on Congress and regulators take their time, do it right, put politics aside, and think of the long-term health of the American capital formation system.

CMC Hosts CFTC in MF Global Briefing

Representatives from agricultural associations and companies gathered Monday morning for a briefing with Commissioner Sommers and key CFTC staff.  This was the second of such briefings CMC has hosted.  With the investigation ongoing, the conversation focused on the bankruptcy process, the regulatory regime governing FCMs and SROs, and the potential legal theories for enforcement.   If you would like more detail, please feel free to contact us.  CMC staff will update our members as our Task Force begins contemplating policy recommendations.  The Commission will kick-off policy discussions later this month and we expect Congress to remain engaged throughout the spring and summer.

CMC’s Top Five Articles to Read This Week

Here are 5 articles I don’t think you can miss this week:


MF Global

In Politics

  • Charlie Cook starts to concur with Chuck Gabriel’s presentation at CMC’s SOTI 2012 event.
  • Up In The Air

In Agriculture

CMC Continues Works Inside The Beltway On MF Global Bankruptcy

Over three months after the MF Global bankruptcy, CMC continues to work to set the table for a robust and thoughtful discussion on policy recommendations.

  • We mobilized our members and formed a Task Force which will hold its first meeting in the coming days.  If you are interested in participating, please contact Meghan Tran (Meghan.Tran@CommodityMkts.Org or 202.842.0400 ext. 104)
  • When the House Ag Committee convened the first hearing on the bankruptcy, CMC had a seat at the table.  In a day-long hearing, R.J. O’Brien CEO Gerry Corcoran delivered the Council’s testimony and answered questions.  To read our testimony, click here.
  • Recognizing the need for greater education and a forum for discussion within the agricultural community, CMC is hosting a series of briefings on the bankruptcy.
  1. Our first briefing was held January 18 and drew a standing room only crowd.  Representatives from over 40 ag trade associations and numerous Hill staff gathered to listen to Ann Shuman, Managing Director & Deputy General Counsel with CME Group, explained CME’s role in the bankruptcy process and answers questions.
  2. Our next briefing is slated for February 13 and will feature representatives from the CFTC discussing a number of topics but including the regulatory framework governing FCMs and the penalties associated with breaching customer segregated funds
  • CMC continues to reach out to our press contacts, keeping them informed about these efforts and offering background and interviews as requested.  Just before State of the Industry, CMC was quoted in this article by Greg Meyer of The Financial Times.
  • Using our extensive inside the Beltway network, we are working with other agricultural, energy and financial groups not only to educate and to offer a forum for discussion, but to be prepared to work with us when the time is right to put forth policy and regulatory recommendations.  Combining the expertise of our membership with a variety of like-minded-groups in DC will multiply the message to help law makers and regulators make better and more informed decisions.