Remarks made after Isda study said capital requirements could rise 2.4 times
The president of the Futures Industry
Association (FIA) has warned that the new capital requirements
under Basel will harm end-users and called for greater
consideration over customer margins when determining bank
"New capital requirements are lessening
clearing options for end-user customers who use futures and
cleared swaps to manage their business risks," said FIA
president Walt Lukken.
"This harms farmers seeking to manage
commodity price fluctuations, commercial companies wishing to
lock in prices as they distribute their goods, and pension
funds using derivatives to enhance workers’
retirement benefits. The negative impacts to the real economy
are significant," he added.
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