Swap-trading rules governing firms such as CME Group Inc. andICAP Plc won't be completed by mid-November at the main U.S.derivatives regulator, according to Commodity Futures TradingCommissioner Scott O'Malia.
|The CFTC plans to first finish separate rules to ensureinterest-rate and credit swaps are backed by clearinghouses thatcollect collateral from buyers and sellers, O'Malia said today at aFutures Industry Association conference in Chicago.
|“I don't think we are going to be able to get through this” bythe CFTC meeting set for Nov. 15, because “there is a lot to benegotiated,” he said. “That's way too soon.”
|The CFTC and Securities and Exchange Commission are required bythe Dodd-Frank Act to increase transparency in the swaps marketafter unregulated trades helped fuel the 2008 credit crisis. Thelaw calls for measures requiring trades to be executed on exchangesor so-called swap-execution facilities.
|Firms that have said they want to create swap executionfacilities include inter-dealer brokers, Phoenix Partners Group LP,Javelin Capital Markets LLC, Tradeweb LLC and Bloomberg LP, theparent company of Bloomberg News.
|The CFTC has other rulemakings to complete in November andDecember, O'Malia said, and swap dealers are expected to registerby the end of the year.
|Bloomberg News
|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
