Derivatives play an important role in capital markets and the broader economy. Companies in every state use derivatives to protect against operational risks that are inherent in their businesses. Nevertheless, because a narrow segment of the derivatives market played a role in the financial crisis of 2008, derivatives regulation became a significant part of the Dodd-Frank Act. 

While SIFMA believes that Dodd-Frank took several important steps with respect to improving transparency in derivatives markets, in some respects the Act goes too far and could limit the availability or increase the cost of these valuable risk management tools for American business, agriculture, and state and local governments. The Act establishes a broad, new regulatory regime that requires numerous rulemakings that are likely to have profound effects on the market, including provisions governing swap dealers, major swap participants, and end-users such as manufacturers, financial institutions, and agricultural concerns. 

SIFMA is working with the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and other regulators that are undertaking rulemaking proceedings to implement the derivatives-related provisions of the Act. SIFMA remains committed to educating legislators, regulators, and others about the types and uses of derivatives, as well as the integral role they play in our economy.