Although the derivatives reforms enacted as a part of the Dodd-Frank Act were targeted primarily towards the regulation of Wall Street banks, they also have had an adverse, unintended impact of agribusiness companies that use derivatives to lock in prices and hedge their commercial risks. Recently, however, things have begun to change.
Terry Arbit and Jon Ammons from Norton Rose Fulbright’s Washington, DC office have published an article in Agri Investor regarding recently adopted and proposed changes to the Dodd-Frank Act and its implementing regulations that would benefit agribusiness companies. These amendments and proposals relate to margin requirements, mandatory clearing for treasury affiliates, forward contracts with optionality regarding volume, and recordkeeping requirements for commercial entities.
As stated on its website, Agri Investor is a dedicated source of information for private investment in agribusiness and agriculture globally, including institutional investors, asset managers, advisors and operators focused on agri investment.