The Dodd-Frank Act includes an overhaul of financial regulations meant to protect the economy and stabilize the financial system. However, automakers and some other manufacturers are concerned that the changes will limit their use of derivatives, which they use to protect themselves against variables, such as interest rates and raw-material prices. Automakers said their cash flow would be destabilized by margin requirements. Robert Pickel, executive vice chairman at ISDA, explained that margin requirements could hinder cash flow. "It's really much more of a liquidity issue," he said. "If a company has to back up those fluctuations with collateral, they'd have to keep cash on hand."
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