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Read. Follow. Verify.Hearing on Financial Rules for Businesses Using Derivatives
Record date · January 1, 2016
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What This Bill Does
The House Subcommittee on Commodity Exchanges, Energy, and Credit held a hearing to examine how post-financial crisis regulations, specifically capital and , affect businesses that use to manage risk. The discussion focused on whether these rules, intended to stabilize the financial system, have created unintended burdens for non-financial companies like manufacturers and agricultural producers.
This hearing evaluates whether current federal financial regulations are making it too expensive for non-financial businesses to use to hedge against risks like fluctuating commodity prices or interest rates.
Who It Affects
Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.
Agricultural producers
These businesses use derivatives to manage commodity price risks and are subject to the regulatory environment governing these financial tools.
Financial institutions
Banks and swap dealers must comply with capital and margin requirements set by federal regulators.
Key Facts
- The hearing was the second in a series examining the implementation of the Dodd-Frank Act over the past five years.
- The subcommittee focused on capital standards and margin requirements for banks, non-bank swap dealers, and other market participants.
- Derivatives are used by producers, manufacturers, merchants, pensions, and insurers to manage commodity, foreign exchange, interest rate, and credit risks.
- The hearing took place on April 28, 2016, in the Longworth House Office Building.
Show all 5 facts
- The subcommittee is part of the House Committee on Agriculture.
Frequently Asked Questions
What are derivatives?
What are capital and margin requirements?
Who are 'end-users' in this context?
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News Coverage
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Votes, people, money & the original sourceFull breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Regulatory Review Cycle
The hearing demonstrates a multi-year oversight effort by the House Agriculture Committee to review the long-term impacts of the Dodd-Frank Act.
Connected Entities
Sources
www.govinfo.gov
Analysis Score
0–100- Significance60How much this matters to a regular citizen
- Controversy40Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz15Current news / social attention level
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