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, researchers produce orange-colored corn with sight-saving capabi...
  • Year-Round Cow Kelly Smith believes fetal programming through good nutrition for dams yields better steers and h...
  • Russ' Vintage Iron DTN staff reporter Russ Quinn takes a look at farm life nearly a century ago.
  • Cash Will Be King Years of $6-and-up corn couldn't last forever. Some proactive grain farmers are bolstering their ...
  • CWA Rule Pressure The Pennsylvania Department of Environmental Protection has asked the federal EPA to withdraw the...
  • COOL Appeal Likely in 2015 Agriculture Secretary Tom Vilsack said the U.S. might not file an appeal of the country-of-origin...
  • Ask the Taxman by Andy Biebl Readers ask if they can offset futures losses against cattle income, roll hedges forward tax-free...
  • Ranch Hands Two families take different approaches to building income from trail rides, roundups and real-lif...
  • Ask the Vet Why isn't my flea and tick control for dogs working?
Related News Stories
Costs Slow to Realign
Ag Interest Rate Snapshot
Minding Ag's Business
Minding Ag's Business
View From the Cab
CME Earnings Rise 23%
Bunge Agribusiness Sales Fall 8.2%
DTN Retail Fertilizer Trends
Minding Ag's Business