Agricultural/Financial correspondent
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Apr 14, 2011

Pssst, looking to trade a swap without margin?

NEW YORK/WASHINGTON (Reuters) — Hey buddy, looking for a bespoke hedge on oil prices or forex rates, without paying millions in margin to your bank? I may be able to help…

If new rules proposed this week stand as written, that may be the pitch from major hedge funds like Citadel or big commodity firms such as BP (BP.L: Quote, Profile, Research) who have long offered similar hedging services as the Wall Street banks, but struggled to grow their business in an increasingly crowded market.

Apr 14, 2011

Analysis: Pssst, looking to trade a swap without margin?

NEW YORK/WASHINGTON (Reuters) — Hey buddy, looking for a bespoke hedge on oil prices or forex rates, without paying millions in margin to your bank? I may be able to help…

If new rules proposed this week stand as written, that may be the pitch from major hedge funds like Citadel or big commodity firms such as BP (BP.L: Quote, Profile, Research, Stock Buzz) who have long offered similar hedging services as the Wall Street banks, but struggled to grow their business in an increasingly crowded market.

Apr 12, 2011

Swap market crackdown seeks to spare businesses

WASHINGTON (Reuters) – Corporate America would be largely spared from increased costs when seeking to hedge business risks, such as spikes in commodity prices, under U.S. regulatory proposals issued on Tuesday.

Power companies, airlines, and major manufacturers feared that regulators would force them to post costly collateral, as part of a nine-month-old government crackdown on the $600-trillion off-exchange swaps market.

Apr 12, 2011

US swaps crackdown looks to spare businesses

WASHINGTON, April 12 (Reuters) – Energy companies, airlines
and other end-users would be mostly exempt from putting up
costly collateral when using uncleared swaps to hedge their
business risks, under regulatory proposals issued on Tuesday.

The proposals marked a step forward in a government push,
now in its ninth month, to rein in Wall Street speculation in
the $600-trillion off-exchange derivatives market, a source of
instability in the devastating 2007-2009 financial crisis.

Apr 12, 2011

Spending deal gives SEC, CFTC modest increases

WASHINGTON (Reuters) – U.S. securities and futures regulators would receive modest funding increases for fiscal year 2011 under the spending deal that averted a government shutdown, according to details released on Tuesday.

Both the Securities and Exchange Commission and the Commodity Futures Trading Commission have said they need big budget increases to implement the Dodd-Frank financial regulation law that Congress enacted in 2010.

Apr 12, 2011

Regulator spares airlines, energy firms from swap margins

WASHINGTON (Reuters) – Top futures regulator Gary Gensler made good on his promise to spare energy companies, airlines and other end-users from paying billions of dollars in margin on uncleared swap trades.

In one of the last rules it needs to write as part of the biggest financial overhaul since the Great Depression, the Commodity Futures Trading Commission proposed on Tuesday that nonfinancial players in the $600 trillion swaps market would not be required to post collateral against bilateral trades.

Apr 11, 2011

Analysis: America Inc wants CFTC to feel its pain on margins

WASHINGTON (Reuters) – Corporate America has spent a year working to persuade Washington that companies could suffer billions of dollars in collateral damage from the biggest financial overhaul since the Great Depression.

This week should give a clue to how successful that effort has been. The U.S. futures regulator is scheduled to unveil a proposal on margin requirements for swap dealers and major swap participants under the Dodd-Frank financial reform law that Congress passed in the wake of the financial crisis.

Apr 8, 2011

USDA aims to boost sales of high-blend ethanol

WASHINGTON (Reuters) – The Obama administration said on Friday it will provide incentives to U.S. gasoline stations to install more pumps with a higher blend of ethanol in an effort to boost consumption of the renewable fuel.

Agriculture Secretary Tom Vilsack said the administration hoped to install 10,000 flexible fuel pumps nationwide in the next five years.

Apr 1, 2011

World Bank lifts 18-month palm oil moratorium

WASHINGTON (Reuters) – The World Bank on Friday lifted an 18-month global moratorium on lending for new palm oil investments, endorsing a strategy that focuses on supporting small farmers that dominate the sector.

The poverty-fighting institution suspended new investments in the palm oil sector in September 2009 to review its lending practices and to conduct global consultations in the $30 billion industry.

Mar 31, 2011

Businesses, lawmakers urge CFTC to tap the brakes

WASHINGTON (Reuters) – The U.S. futures regulator must swallow its pride and ask Congress for a delay in implementing derivatives regulations, some lawmakers and businesses said on Thursday as they criticized the agency for moving too fast.

The U.S. Commodity Futures Trading Commission has increasingly come under fire from Republican lawmakers, along with those affected by the new rules, for emphasizing speed over deliberation in the rule-writing. Some have called for a delay to collect more data and determine how the new measures will affect the market.

    • About Christopher

      "Currently based in Washington, Christopher reports on agriculture in Congress and the U.S. Agriculture Department. He also is actively involved in covering regulatory reform, with a focus on the U.S. Commodity Futures Trading Commission."
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