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AFP Press Release

AFP Applauds Overwhelming House Passage of OTC Derivatives End-User Exemption on Margin Requirements


The Association for Financial Professionals (AFP), the professional society representing corporate treasurers, CFOs and their staff, issued the following statement on bipartisan passage by the U.S. House of Representatives of H.R.634, the Business Risk Mitigation and Price Stabilization Act, which exempts non-financial end-users from imposed-margin requirements on over-the-counter (OTC) derivatives trading, a sought-after clarification to the Dodd-Frank WThe Association for Financial Professionals (AFP), the professional society representing corporate treasurers, CFOs and their staff, issued the following statement on bipartisan passage by the U.S. House of Representatives of H.R.634, the Business Risk Mitigation and Price Stabilization Act, which exempts non-financial end-users from imposed-margin requirements on over-the-counter (OTC) derivatives trading, a sought-after clarification to the Dodd-Frank Wall Street Reform and Consumer Protection Act passed into law in 2010.

“AFP has long-supported the end-user exemption for posting margin, a provision conceived in response to poor banking oversight and intended for financial institutions.  The House’s passage of this legislation affirms overwhelming support for protecting non-financial businesses that use derivatives markets for cash management and prudent risk hedging purposes” said Jim Kaitz, AFP’s president and CEO. 

“On behalf of AFP members, we applaud House passage of H.R. 634 and look forward to the Senate bringing the language of this legislation to vote with the same support.”

Since 2011, AFP has advocated for the end-user margin requirement exemption through written comment letters and meeting with lawmakers of both political parties. We will continue to engage with lawmakers in the Senate and the White House to help put this vital protection  for businesses into law.all Street Reform and Consumer Protection Act passed into law in 2010.

“AFP has long-supported the end-user exemption for posting margin, a provision conceived in response to poor banking oversight and intended for financial institutions.  The House’s passage of this legislation affirms overwhelming support for protecting non-financial businesses that use derivatives markets for cash management and prudent risk hedging purposes” said Jim Kaitz, AFP’s president and CEO. 

“On behalf AFP members, we applaud House passage of H.R. 634 and look forward to the Senate bringing the language of this legislation to vote with the same support.”

Since 2011, AFP has advocated for the end-user margin requirement exemption through written comment letters and meeting with lawmakers of both political parties. We will continue to engage with lawmakers in the Senate and the White House to help put this vital protection  for businesses into law.

 

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