U.S. swaps regulator delays expansion of dealer oversight
- AT&T (T) Agrees to Acquire Time Warner (TWX) for More than $80 Billion - WSJ
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
U.S. Commodity Futures Trading Commission (CFTC) Chair Timothy Massad is interviewed at the Reuters Financial Regulation Summit in Washington, US May 19, 2016. REUTERS/Gary Cameron
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
WASHINGTON (Reuters) - Smaller swap-dealing firms were granted a one-year reprieve from oversight, with the regulator for the U.S. market delaying a planned expansion of the dealers who must register with the federal government.
Since 2012, any dealer with more than $8 billion in swap activity has been required to register with the Commodity Futures Trading Commission, which subjects it to stricter federal oversight.
That swap activity value in dollars, known as the "de minimis" threshold, had been poised to fall to $3 billion by the end of 2017. In order to determine if they complied, smaller dealers would have had to take on more recordkeeping and track trades more closely starting in January.
CFTC Chairman Timothy Massad said in a statement that the commission had found that lowering the threshold would not make more interest rate and credit default swaps subject to regulation, but would require many firms with a small role in the market to register.
He added that the CFTC should adopt a rule on capital requirements for swap dealers before lowering the threshold, which he hopes will happen soon.
Commissioner Sharon Bowen, meanwhile, said the delay would allow the regulator to collect more comprehensive data on the market.
"But I wish to make something clear: We need to see hard data backing up the opinions we will receive during this delay about why we should not just allow the threshold to be $3 billion as established in the rule," she said in a statement. "I know that there is a great deal of disagreement about this issue, and I do not think we will be able to reach a consensus unless we have real economic analysis and evidence."
(Reporting by Lisa Lambert)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Trump uses policy speech to attack media, promises to sue accusers
- Two children killed in Georgia home invasion: police
- Rescuers save 2,400 migrants in Mediterranean, recover 14 bodies
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!