FEI Congratulates the House of Representatives on the Passage of Important Derivatives Reforms
MORRISTOWN, N.J. and WASHINGTON, June 25, 2014 /PRNewswire/ -- Financial Executives International (FEI) congratulates the U.S. House of Representatives on the bipartisan passage of H.R. 4413, the Customer Protection and End User Relief Act.
H.R. 4413 reauthorizes the Commodity Futures Trading Commission (CFTC) for five years, and was also used as a vehicle for lawmakers to pass reforms pertaining to the oversight of the derivatives industry. Earlier this year, the House Agriculture Committee included key derivatives reform language in H.R. 4413, incorporating the text of another bill, H.R. 634, the Business Risk Mitigation and Price Stabilization Act, as well as key provisions of H.R. 677, the Inter-Affiliate Swap Clarification Act.
FEI has strongly advocated for these provisions, which ensure that non-financial derivatives end-users are not subject to unnecessary margin requirements, and would exempt swaps with centralized treasury units ("CTUs") of non-financial end-users from clearing requirements. Without a clear exemption from margin and clearing requirements, non-financial companies who use derivatives would have to divert billions of dollars away from much-needed investments, such as business expansion and job creation.
"As an association that represents senior financial executives from multinational corporations, it is vital to the interests of our membership that derivatives remain intact as an essential tool for reducing business risk," said Marie Hollein, President and CEO of Financial Executives International. "The passage of these reforms in H.R. 4413 will help to ensure that non-financial companies are not held hostage to regulatory requirements that would force them to set aside money that could be better spent putting Americans to work."
FEI appreciates the House of Representatives' continued commitment to designing a financial regulatory system that is competitive and transparent. FEI looks forward to working with the Senate Agriculture Committee as they advance their own version of CFTC reauthorization.
About FEI
Financial Executives International is the leading advocate for the views of corporate financial management. Its almost 11,000 members hold policy-making positions as chief financial officers, treasurers and controllers at companies from every major industry. FEI enhances member professional development through peer networking, career management services, conferences, research and publications. Members participate in the activities of 74 chapters in the U.S. and a chapter in Japan. FEI is headquartered in Morristown, NJ, with a Government Affairs office in Washington, D.C. Visit www.financialexecutives.org for more information.
SOURCE Financial Executives International
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