End users and FCMs warn proposed capital and margin changes could curb farmers' access to hedging
End-user representatives and clearing firms at AgCon warned that Basel III bank capital proposals and changes to exchange margin models (SPAN 2) may raise costs and reduce the number of clearing firms willing to onboard smaller hedgers, risking access for farmers and ranchers.
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Speakers from clearing firms and commercial end users told a CFTC panel in Kansas City that longstanding consolidation among futures commission merchants, together with new capital and margin methodologies, could reduce hedging options for smaller agricultural producers.
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