As lawmakers hash out the details of new rules governing the over-the-counter derivatives market, business groups are stepping up their fight for an exemption from expected margin requirements for firms known as end-users.
Survey data released this week estimates that a 3 percent margin requirement on OTC derivatives could cut capital spending among corporate end-users, non-financial firms that use derivatives mainly to hedge risks, by $5.1 billion to $6.7 billion a year and cost 100,000 to 130,000 jobs. The study, conducted by Keybridge Research, was commissioned by the Coalition for Derivatives End-Users, a group whose members include the Business Roundtable, the U.S. Chamber of Commerce, and Financial Executives International.
