Dodd-Frank reporting rule hurts hedgers, Massad admits

CFTC head acknowledges difficulty faced by hedgers in illiquid commodities from Dodd-Frank reporting rules

Oil barrels
Long-dated crude oil hedging frustrated by CFTC rules, say firms

Regulations issued by the US Commodity Futures Trading Commission (CFTC) that cast a spotlight on illiquid markets in commodity derivatives can harm the hedgers they were meant to protect, CFTC chairman Timothy Massad said at a February 12 hearing in Washington, DC.

The comments echo the concerns of companies such as Texas-based Southwest Airlines, which execute over-the-counter hedging transactions in relatively illiquid markets such as long-dated crude oil.

Under a CFTC rule stemming from the

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