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December 07, 2009

By Dwight Cass

The House revives the corporate exemption but the Senate says no.

Corporate hedgers suffered some—possibly temporary—setbacks on Capitol Hill last month. After the House Financial Services and Agriculture committees passed over-the-counter derivatives regulation bills that exempted corporate hedgers and all foreign exchange swaps and forwards, Congressmen back-pedaled on both points. But in a last-minute reversal, the House revived the exemptions. Unfortunately, legislation introduced in the Senate contains no corporate or FX exemptions.