WASHINGTON – July 11, 2012 - The Association for Financial
Professionals (AFP), the professional society representing corporate
treasurers, chief financial officers and their staff, issued the following
statement on Tuesday’s approval by the Commodity Futures Trading Commission
(CFTC) to exempt over-the-counter (OTC) derivatives end-users from
clearinghouse requirements, distinguishing their usage for commercial hedging
“Tuesday’s approval protects a necessary pathway for
businesses to practice safe and responsible financial risk management,” said
Jim Kaitz, AFP's president and CEO.
“The end-user exemption from the clearing mandate recognizes
the importance of preserving this risk management tool and sets the right
precedent for rulemaking. A similar rationale should be applied to margin
requirements for end-users, which would obstruct the utility of OTC derivatives
for business risk mitigation.”
Final approval came with a 4-1 vote defining the end-user
clearing exemption, as intended by the Dodd-Frank Wall Street Reform and
Consumer Protection Act.
AFP has been a leading voice for non-financial businesses,
which utilize OTC derivatives to minimize their risk exposures and to follow
prudent financial management practices.
For more information, contact Konstantine Kastens in AFP's
government relations department at 301.907.2862 or via firstname.lastname@example.org.
ABOUT AFP® (afponline.org)
The Association for Financial Professionals (AFP) is a professional society
headquartered outside Washington, DC, that provides members with news, economic
research and data on the evolving world of treasury and finance, certification
programs, networking events, financial analytical tools, training, and public
policy representation to legislators and regulators. AFP's global reach extends
to over 150,000 treasury and financial professionals worldwide, including AFP
of Canada; London-based gtnews, an on-line resource for the treasury and
finance community; and bobsguide, a financial IT solutions network.