CFTC Flooded with Delay Requests Ahead of Swaps Deadline

Lobbying groups in the derivatives industry are bombarding the CFTC with requests to delay new derivatives rules set to go into effect on October 12.

“We urgently request that the commission delay the effectiveness of all rules until clarifying guidance, which in many cases has been promised by the commission, can be issued,” the Financial Services Roundtable, a Washington-based lobby, wrote in a letter to the CFTC on Tuesday. “Without resolution on these points, our members cannot understand how to comply with the new rules, and accordingly cannot comply. This is in no one’s interest.”

The torrent of delay requests comes in advance of an October 12 deadline for a mandate that requires derivatives traders to count their trades. If they exceed the threshold set by Dodd-Frank regulation, they are subject to high capital and collateral requirements.

Bloomberg Businessweek reports that energy firms in particular are lobbying the CFTC ahead of the new rules. A $25 million threshold for dealing with special entities also goes into effect on October 12. Some companies, like Electric Power Supply Association, are filing for an exemption for swaps tied to utility operations.

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