CFTC Chairman: Swap Rules Will Lower Cost

Transparency and competition in the swaps market will benefit corporations and commercial end users, according toCommodity Futures Trading CommissionChairmanGary Gensler,NASDAQreports. He further added that it will lower costs over a period of time.

Commercial end users who use over-the-counter derivatives called swaps to hedge business risk, including interest rate and currency risk, have criticized the rules that are currently being written. Gensler also said that the new system will be more open and competitive, which will lower the cost of hedging transactions.

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