ACT joins Europe-wide concerns over OTC derivative reforms

Treasury Associations across Europe together with more than 160 non financial companies including a broad cross section of 44 UK companies based in Europe have signed a letter to the Commissioners of the European Union to urge reconsideration of the proposals being drafted to regulate the derivatives market.

The Association of Corporate Treasurers has been working through the EACT (European Association of Corporate Treasurers) to explain the reactions from, and impact on, UK based companies.

The ACT fully supports and endorses the views expressed by the EACT in their press release and letter, the full version of which is available at http://www.treasurers.org/otcderivatives/eactresponse/201001.

Stuart Siddall, Chief Executive of the ACT said:

 The possibility that regulation of OTC derivatives could drain company liquidity away from more productive uses has engendered huge concern with members working in non financial companies. We are pleased that the FSA/HM Treasury report published in December 2009 recognises that non financial companies should be treated differently from financial firms. Stuart Siddall, Chief Executive of the ACT

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