Market end users voice concerns over CFTC's new rules

07/25/2013 | Agri-Pulse.com · Hoosier Ag Today (Clermont, Ind.)

New regulations from the Commodity Futures Trading Commission could have deleterious effects on market end users such as farmer cooperatives that use derivatives products to hedge risks, according to Scott Cordes, president of CHS Hedging. Cordes testified in front of the House Agriculture Committee's Subcommittee on General Farm Commodities and Risk Management. "We are concerned with several aspects of the proposed regulations, including changes around capital charges, residual interest, and establishment of risk management systems under Rule 1.11, which will be financially and operationally burdensome for smaller FCMs," he said.

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Agri-Pulse.com · Hoosier Ag Today (Clermont, Ind.)

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