CFTC Backs Exempting End-Users From Margin in Non-Bank Swaps

The U.S. Commodity Futures Trading Commission will seek comment on derivatives regulations that a Republican member said would create a “lack of harmonization” in rules for financial companies and commercial end-users.

CFTC members voted 4-1 today to propose rules that would exempt end-users such as large manufacturers from requirements to set aside margin to reduce risk in trades with non-bank dealers or major swap participants. The Federal Deposit Insurance Corp. voted separately today to proposal a measure governing banks.