FOR IMMEDIATE RELEASE
Tuesday, December 15, 2015
Contact: Jeff Gohringer, 202-618-6430 or email@example.com
Better Markets Statement Ahead of CFTC Vote on Margin Rules
Washington, DC — Better Markets President and CEO Dennis Kelleher issued this statement ahead of a vote tomorrow by the Commodity Futures Trading Commission (CFTC) on the final margin rules for swap dealers:
“Margin is the core of basic risk management. It is one of the most potent tools to combat excessive risk-taking and protect sound markets from unchecked risks posed by derivatives trading. In many ways, initial margin acts like the down payment on a house – it represents the buffer to absorb a drop in prices before the borrower goes underwater and then bankrupt. The same risks are presented in swaps contracts, and the lack of a prudent comprehensive margin system was a primary reason large firms such as Lehman and AIG were ultimately bankrupted by their swaps contracts. The CFTC should build on the strengths of its proposed rule to ensure that margin is applied broadly and consistently throughout the swaps market.”
Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.