Dodd Broadens Major Swap Player Definition (Derivatives Week)

We should get much more information about the Senate’s view on OTC derivative reform on Friday when the first amendment to the bill is expected.  In the meantime:

While most derivative pros did not expect the broader definition in Dodd’s revised bill, they believe the Reed-Gregg amendment will focus heavily on exemptions. “The way it feels to me is…the true end-user firms, the non-financial corporate firms, airlines, construction companies, etc…believe they will mostly in the end be exempt,” said Kevin McPartland, a senior analyst at TABB Group. “There are too many downsides [to forcing clearing on them]. I do think they will put language that will include a lot of the major hedge fund and buyside firms that are heavy into derivatives.”

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