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FIA rejects CFTC proposal to repeal hedge exemptions


The Futures Industry Association urged the Commodity Futures Trading Commission to retain hedge exemptions for dealers in over-the-counter derivatives market, in a comment letter to US regulator sent on June 16.

The CFTC invited public comment on March 17 on a proposal that would replace the bona fide hedge exemptions for swap dealers with a limited risk management exception.

The FIA commended the CFTC for its efforts to “protect the integrity of the price discovery process”, but said a repeal of these exemptions would not achieve the agency’s goal of “promoting greater transparency and accountability” and...

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