Users of interest-rate and credit swaps will have until July 1to comply with the reporting rule, according to the CFTC statement.The deadline for users of equity, foreign exchange and othercommodity swaps was extended until Aug. 19. Non-financialcounterparties gained an extension to Oct. 31 for certain reportingrequirements for all swap asset classes.
|“I am troubled by the arbitrary and ad-hoc manner in which thisrelief was provided,” CFTC Commissioner Scott O'Malia, aRepublican, said in a statement. “The application of date, product and participantdistinctions makes compliance and implementation confusing for theend users.”
|The CFTC and Securities and Exchange Commission are implementingderivatives provisions of Dodd-Frank, the 2010 regulatory overhaul,after largely unsupervised trades helped fuel the 2008 creditcrisis. New rules planned for the $639 trillion global swaps marketrequire that trade information be reported to so-called swap datarepositories that function as central record-keepers.
|The Commercial Energy Working Group, an alliance of companiesthat weren't identified individually, requested a six-month delaythrough lawyers at Sutherland Asbill & Brennan LLP in a March 1letter to the CFTC.
|“Of all the different groups that would be responsible forreporting, they are probably the least prepared,” Brenda Boultwood,vice president of industry solutions at Palo Alto, California-basedMetricStream, which helps clients manage regulatory compliance,said in a telephone interview before the delay was announced.
|Lobbying groups representing Barclays Plc, JPMorgan and GoldmanSachs Group Inc. have also urged that the CFTC delay the reportingrules for their clients. In a March 28 letter to the CFTC, theInternational Swaps and Derivatives Association Inc. and FinancialServices Roundtable said bank clients need a delay because theylack the resources to comply with the rules.
|Bloomberg News
|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
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