Caterpillar has warned the proposed derivatives bill will seriously hamper the growth of U.S. manufacturers, Financial Times reports. The draft bill presented by Chairman of the Senate banking committee, Chris Dodd, introduces tougher capital requirements on institutions using OTC contracts.

Contracts that cannot be centrally cleared would be subject to relatively high margin requirements, which would have a big impact on working capital, said Clay Thompson, head of government affairs at the earth-moving equipment maker. If OTC trading were made costly, manufacturers would not be able to hedge their risk, which would impact their earnings, he added.

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