CFTC adopts real-time swap clearing decisions rule


The CFTC completed rules requiring banks or clearing houses to decide within minutes whether to clear a swap as soon as technologically possible. The rule was passed by a 4 – 1 vote.

At the meeting in Washington, CFTC chairman Gary Gensler said, “This lowers risk to the markets by minimizing the time between submission and acceptance or rejection of trades for clearing.”

The CFTC may require Wall Street banks and large funds to clear certain types of swaps as early as October, Chairman Gensler said. The Commission may publish recommendations in April for which types of swaps will be required to clear, which would then be open to a 90-day review process. The first determinations for what type of swap must be cleared may come as early as July.

Read more about the rule.

Photo credit: wwarby 

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About the Author

Elan Mendel
Elan Mendel is an associate with Shipkevich PLLC, and has done registration, compliance, and enforcement defense work for commodities, futures and forex firms registered with the CFTC and NFA as FCMs, RFEDs, and others. Elan also specializes in domestic and cross-border insolvency issues.

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