Financial Times FT.com

Regulators warn of derivatives law loopholes

By Aline van Duyn and Joanna Chung in New York

Published: October 7 2009 18:49 | Last updated: October 7 2009 18:49

US regulators on Wednesday said that efforts to shield non-financial companies such as electric utilities and airlines from the effects of more stringent derivatives rules could open up dangerous loopholes in new legislation.

Companies that use derivatives to hedge risks such as currency, interest rate and commodity price moves have urged US and European lawmakers to amend plans to curb the risks of derivatives by exempting them from requirements to use clearing houses.

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