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
  • Crop Tech Corner In this week's Crop Tech Corner, a community of Arkansas farmers have successfully banded togethe...
  • Market News AgriClear is not an auction, but an online digital sales floor where buyers and sellers negotiate...
  • UAS Research Takes Off Key members of the House and Senate last week praised the Federal Aviation Administration for sel...
  • "Total Market Isn't Dead" Used equipment inventories are escalating.
  • Rain, Rain, Go Away Waterlogged and flooded fields in much of the Midwest are putting corn and soybean fields at risk...
  • Feds to Examine Biotech Rules In a memo to USDA, FDA and EPA, the White House stated that a review of biotech regulations was n...
  • Evolution of Farm Kid Jobs DTN Staff Reporter Russ Quinn reflects on the farm activities of his youth that his children will...
  • IARC: Possible 2,4-D Cancer Link The International Agency for Research on Cancer has classified the herbicide 2,4-D as possibly ca...
  • Ask the Vet How do I know what minerals my cows need and how much?
Related News Stories
Market Matters
Ag Interest Rate Snapshot
Minding Ag's Business
Minding Ag's Business
Minding Ag's Business
Monsanto Earnings Rise
Minding Ag's Business
Labor Pains - 1