WASHINGTON, DC - Legislation introduced by Congressman Warren Davidson (OH-08), the Derivatives Fairness Act H.R. 5323, a bill that brings much needed regulatory relief for end users in Ohio and across the country, cleared the Financial Services Committee today with a 34 to 26 vote and will head to the House floor for a full vote.

 

“The Derivatives Fairness Act is a real world solution that provides a level playing field, and further relief, for businesses in Ohio and across the country who are digging out from the regulatory overreaches of Dodd-Frank."

 

Derivatives help local companies reduce risk. Currently, European companies pay less for derivatives. This bill allows American companies to trade derivatives fairly without penalty. H.R. 5323 aims to lift the economic repercussions of the 2010 Dodd-Frank financial law by leveling the playing field for U.S. businesses with their non-U.S. counterparts. The bill will bring relief and let end users such as farmers, manufacturers, hospitals, and other Main Street companies manage their own risks.

 

H.R. 5323 was introduced on March 19, 2018 and referred to the House Committee on Financial Services.

 

Background: Financial markets exist to help businesses access capital and manage their risks. While the Dodd-Frank Act specifically exempted end-users from most of its mandated regulations, the reality is far different. Many end-users have been caught up in the intricate web of Dodd-Frank rules put forward by regulators who have used the response to the financial crisis as an opportunity to expand their footprint and demand information and compliance from market participants who did not cause the financial crisis. As American businesses struggle with an anemic economy and the new regulatory burdens imposed by the Dodd-Frank Act, Congress should make sure that regulators are not imposing unnecessary regulations, simply because they have the power to do so. (Page 45, A Better Way, A Conservative Agenda for U.S. Governance)

 

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