The Commodity Futures Trading Commission approved a rule March 25 that excludes swap contracts that banks use to help customers hedge loan risk from an $8 billion threshold for determining which lenders must register as dealers.
The Republican-led commission voted 3-2 along party lines for the exclusion, that backers say will help borrowers hedge against rising loan costs. The dealer-registration requirement, which was mandated by the Dodd-Frank Act, imposes stricter margin and capital rules.
Commissioner Comments
- “These amendments are absolutely essential to helping rationalize the de minimis threshold and ensure that end-users and Main Street businesses don’t suffer from an ...
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