Derivatives users fear cost burden of reforms

Major companies that use derivatives to hedge their liabilities are concerned reforms to the over-the-counter (OTC) derivatives market in Europe and the US would result in such products becoming more expensive and less effective.

End-users from companies including Lufthansa, Rolls-Royce and Cargill, and organisations such as US-based National Rural Electric Cooperatives Association, have complained that reforms on both sides of the Atlantic are being crafted without taking corporates’ needs into