The CFTC’s Division of Market Oversight this week granted no-action relief from certain requirements applicable to swap dealers and major swap participants regarding the reporting of swap transactions to swap data repositories. The no-action relief, issues June 30, 2014, extends previous no-action relief regarding the reporting of valuation data reporting of cleared swaps.Read More
It was hoped that the swaps market reform would help promote trading between these two groups. But, even without this, the market will at least be more transparent.
The CFTC and the EU have agreed to allow US firms to trade over European platforms, rather than forcing them to be traded through US swap execution facilities, or SEFs.
According to Bloomberg, the EU’s antitrust probe will see delays now that the banks involved with the case have successfully fought for the ability to see the confidential information the Commission has gathered on the…
O’Malia, who was named commissioner of the CFTC in 2009, has stated that there have not been any significant issues to date, though they were having difficulty getting consistent data on just how many trades have been executed through the facilities so far.
The CFTC mandated that all swaps trading must be done through SEFs in order to add more transparency to the swaps market, which is often considered to be a major factor in the cause of the 2008 financial crisis.
The delays will affect the required reporting of foreign exchange swaps as well as equity swaps, by one and two months, respectively. The largest part of the market, fixed income and credit swaps, will be unaffected, and will begin being reported on October 2nd.
Also in his testimony, Gensler cited the recent progress made with cross-border swaps regulation in addition to registration of securities as positive steps forward in the CFTC’s aim to create transparency in the futures industry.
The Federal Reserve announced that they will be reviewing their rulings regarding Banks trading commodities after receiving complaints.
The impacts of the Commodities Futures Trading Commission’s (CFTC) response to cross-border swaps are yet unknown. With a 75 day period of guidance in addition implementation of the final ruling, this unprecedented move by the CFTC may deeply impact the derivatives market.