“The creation of the CFMA [Commodity Futures Modernization Act of 2000] involved a lot of input from a lot of different groups,” said Miller. “Unravelling the CFMA could provide greater risks than taking a measured approach.” Miller said the regulators' response to date has been encouraging: “We have a pretty robust financial system and it doesn’t warrant change at this time.”
But Miller does believe some tweaking is necessary. The EUDC supports an immediate revision of the bankruptcy code regarding the netting of outstanding derivatives contracts in the event of bankruptcy by a counterparty.
Meanwhile, the EUDC is in the process of surveying its members to find out the impact that FAS133 has had on the use of derivatives among the 5,000 companies represented by its members.