Regulators Seek To Quell Fears Over Swap Margin Rule

Law360, New York (February 15, 2011, 3:25 PM EST) -- U.S. regulators sought to reassure Republican lawmakers Tuesday that new rules governing the $600 trillion derivatives market would not require airlines, manufacturers and other nonfinancial companies to post costly margins against their over-the-counter trades.

In a hearing before the House's Committee on Financial Services, U.S. Commodity Futures Trading Commission Chairman Gary Gensler said his agency's rules implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act would exempt so-called end users from margin requirements.

"We'll get this margin thing right," Gensler said. "We understand congressional intent...
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