CME Group, the world's largest and most diverse derivatives exchange, today announced that CME Group Executive Chairman Terry Duffy will appear before the U.S. House Committee on Financial Services' Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises Tuesday to discuss proposed regulatory changes for the over-the-counter (OTC) markets.
"We support position reporting for OTC derivatives and agree that enhanced price transparency across the entire market is essential to quantify and control risk," Duffy said. "However, the means chosen to achieve these ends should be fine-tuned to avoid adverse consequences for U.S. markets. For example, legislation mandating the clearing of all OTC derivative transactions could well induce certain market participants to transfer this business offshore, resulting in a loss to the U.S. economy and reduced market liquidity. This shift could also undermine the established price discovery and risk hedging missions of U.S. futures exchanges."
The hearing is scheduled for 10:30 a.m. Eastern time Tuesday in the Rayburn House Office Building. The testimony will be available at 10:30 a.m. Eastern time.
