A letter, signed by nearly 90 non-financial companies, including a number of ACT members, has been sent to the European Banking Authority to call on them to abandon planned measures that would have serious impact on their ability to manage their financial and business risks. Non-financial companies use OTC derivatives to reduce the risks arising in underlying commercial and industrial operations. They do not enter into such transactions for speculative purposes, do not pose systemic risks and represent a very small proportion of the overall OTC derivatives market. The importance of the ability of these companies to manage their risks has been recognised by the EU legislator and exemption has been granted for non-financial companies under the legislation on OTC derivatives1 However, the EBA is currently working on plans to impose additional capital requirements on these same instruments that have been exempted by the EU legislator. Such measures would make risk management more expensive and complex for non-financial companies and would deter them from mitigating their risks with the consequent negative impact that would have on their funding costs, their general financial position and overall shareholder value. The European Association of Corporate Treasurers (EACT) of which the ACT is a member has drafted the letter on behalf of national treasury organisations from across Europe. The EACT letter to the EBA is available here