Tuesday, June 19, 2012

Derivatives End-Users Coalition Urging Senate Action on House Bills Exempting Inter-Affilitate Swaps and Codifying End-User Exemption

The Coalition for Derivatives End-Users hosted a group of Corporate Treasurers in Washington, DC for a day of meetings to urge the Senate to support key legislation that would create clear end user exemptions from Dodd-Frank derivatives requirements. Specifically, the House has passed HR 2779 to exempt inter-affiliate swaps from Dodd-Frank Title VII regulation and HR 2682, the Business Risk Mitigation and Price Stabilization Act. These bills passed the House with strong bi-partisan support, but are stalled in the Senate.

HR 2682, which passed the House by a vote of  370-24 would clarify Dodd-Frank derivatives provisions by clarifying the end-user exemption from margin and capital requirements. End-users are generally companies that use derivatives to manage commercial risk, and not to speculate.  HR 2779, which passed the House by a vote of 357-36, would exempt from Dodd-Frank derivatives regulation swaps and security-based swaps entered into by a party that is controlled by or under common control with its counterparty.