FARM BUSINESS NEWS
Industry Scrutinizes Proposed CFTC Rule
Katie Micik DTN Markets Editor
Tue May 21, 2013 03:24 PM CDT

OMAHA (DTN) -- Two provisions of CFTC's proposed rules to enhance customer protections came under fire in a House Agriculture Committee hearing on the regulator's reauthorization on Tuesday.

Futures industry leaders said the proposals on residual interest and capital charges would substantially increase the cost of hedging, perhaps requiring customers to put up to $100 billion more in collateral, and would disproportionately affect small to mid-size futures commission merchants. They urged CFTC to complete a thorough cost-benefit analysis before implementing the rule.

The residual interest provision requires futures commission merchants (FCMs) to maintain enough capital to cover any deficiency in ...

Quick View
  • Prepping for a Pest USDA has released a new set of pest response guidelines for Helicoverpa armigera, the voracious g...
  • Racing the Clock For Brian Marshall, the clock starts the minute a new calf hits the ground. Within the first four...
  • Hay Baling Safety Important Looking at it as a sporting event, mid-July is the halftime of the hay baling season in most of t...
  • Study Your Farm Bill Options Feeding the world population won't be as hard as expected over the next decade some experts forec...
  • Weathering the Drought Parts of the panhandle and western Oklahoma are still considered as being in extreme or exception...
  • Clearing the Air EPA Administrator Gina McCarthy told a group of agribusiness representatives that her agency want...
  • Klinefelter: By the Numbers Peak prices since 2007 didn't slow megafarm consolidation. Mid-size operators may need to collabo...
  • Corn's Hidden Highways Scientists are rewriting the route to better hybrids.
  • Ask the Vet Before implanting heifers that will be bred, consult with a veterinarian to be sure fertility won...
Related News Stories
Ag Interest Rate Snapshot
Check and Certify
Klinefelter: By the Numbers
Minding Ag's Business
Minding Ag's Business
Minding Ag's Business
Senior Partners - 3
Rates Too Low Too Long