U.S. Business Leaders Welcome House-Passed Reforms That Reduce Economic Costs, More Effectively Target Systemic Risks

• The Coalition for Derivatives End-Users, which represents U.S. companies and business associations, applauded yesterday’s strong bipartisan vote in the U.S. House of Representatives on two important financial reform bills.
• The legislation embodies meaningful reforms to protect companies that use derivatives to manage business risk, while more effectively focusing new regulations on the systemic risks that the Dodd-Frank Wall Street Reform and Consumer Protection Act was intended to address.

The reforms were included in the following two bills passed by the House:

• H.R. 2779, a Bill to Exempt Inter-Affiliate Swaps from the Regulatory Requirements of Title VII of the Dodd-Frank Act, introduced by Representatives Steve Stivers (R-OH) and Marcia Fudge (D-OH), would prevent internal, inter-affiliate trades from being subject to regulatory burdens that would create costs without a corresponding benefit.  Click here to view the Coalition for Derivatives End-Users letter of support for H.R. 2779.
• H.R. 2682, the Business Risk Mitigation and Price Stabilization Act of 2011, introduced by Representatives Michael Grimm (R-NY), William Owens (D-NY), Gary Peters (D-MI) and Austin Scott (R-GA), would create a partial exemption from margin requirements for derivatives end-users.  Click here to view the Coalition for Derivatives End-Users letter of support for H.R. 2682.