From the farmer perspective, there won’t be much impact on traditional risk management tools such as futures and options on the exchanges, says Kelly Ludlum, American Farm Bureau’s director of congressional relations. "Most of this bill is aimed at the more sophisticated—for lack of a better word—over-the-counter products that previously were unregulated and that have not gone through the exchanges."
Indirectly, there is a chance that banks and other lenders who used such OTC products to manage interest rate risk may pass along higher costs incurred by clearing through an exchange to customers. "We don’t know how much impact that might be but our guess is that it would not be a great deal," says Ludlum.
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