Ag hedgers dodge CFTC red tape?

摘要

THE Commodity Futures Trading Commission's (CFTC) long-awaited rule denning who must register as a "swap dealer" is expected to be published this week. The National Grain & Feed Assn. (NGFA) is optimistic that it will include language sought to protect end users, such as feed mills and grain elevators, from costly new red tape when using commodity futures to hedge risk. The rule is one among a lengthy series in the implementation of the 2008 Dodd-Frank financial reform bill. "While we will await publication of the actual text of the regulations before rendering a final judgment, we are encouraged .that CFTC acted to increase significantly the de minimis level of swap activity — to $8 billion annually — that would be necessary before an entity is classified as a swap dealer compared to what initially was proposed," said Todd E. Kemp, NGFA vice president of marketing and corporate treasurer.