×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Derivatives Rules

Farmers, Airlines Exempt from Derivatives Rules

Tuesday, 12 April 2011 01:36 PM

Companies that trade derivatives solely to guard against volatile price swings won't have to meet new federal collateral requirements.

The Commodity Futures Trading Commission advanced the exemption Tuesday as part of new regulations for derivatives, investments whose value depends on the future price of some other investment.

The rules, which were included in last year's financial regulatory law, require banks and businesses that trade derivatives to put up millions of dollars to cover their losses. The aim is to cut down on the kind of risky trades that contributed to the 2008 financial crisis.

But airlines, oil companies and farmers are among hundreds of businesses that won't be required to do so, if they use derivatives to control unforeseeable costs, such as extreme weather that damages crops.

© Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


FinanceNews
Companies that trade derivatives solely to guard against volatile price swings won't have to meet new federal collateral requirements.The Commodity Futures Trading Commission advanced the exemption Tuesday as part of new regulations for derivatives, investments whose value...
Derivatives Rules
127
2011-36-12
Tuesday, 12 April 2011 01:36 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved