While the Democrats in the U.S. Senate missed their July 4 goal to get enough votes needed to pass the Dodd-Frank Wall Street Reform and Consumer Protection Act, the clock is ticking for companies to comment to the European Commission ‘s Public Consultation on the Derivatives and Market Infrastructures. The deadline ends July 10 and comments can be sent easily by email to email@example.com.
An important difference that could emerge between U.S. and Europe could be the approach in how companies can be forced to clear derivatives and therefore post margin. The Dodd-Frank bill proposes essentially outright exemptions for clearing for non-financial corporations and potentially smaller banks whereas the EC may consider creating thresholds, above which clearing could be forced on any counterparty.
For my comments to this proposal please read the comment letter posted at www.savemyswaps.com
Whether you agree with my comments or not, it is important that individual companies submit their responses by July 10 and have your voice heard.