SIFMA today released the following statement from Ken Bentsen, executive vice president, public policy and advocacy upon passage by the Subcommittee on Capital Markets and Government Sponsored Enterprises of the House Financial Services Committee of H.R. 1610, the Business Risk Mitigation and Price Stabilization Act, which would exempt end users from having to post margin for derivatives contracts.
“We firmly believe that U.S. corporations, manufacturers, agricultural producers and pension funds and municipalities should not be required to post margin for derivatives they use to hedge legitimate business risks. We applaud the Subcommittee for recognizing the fact that requiring end users to post margin will make the cost of hedging business risk more expensive and could result in higher prices for consumers who purchase products from these companies. We now urge the full Financial Services Committee to act on this legislation.”
