| WASHINGTON, April 9
WASHINGTON, April 9 The top U.S. derivatives
regulator granted manufacturers and other firms more time to
start reporting swaps they do not use for speculative purposes,
the latest in a raft of last-minute exemptions to new rules to
make the swaps market less risky.
As of Wednesday, companies that aren't large banks or
investors such as hedge funds - known as 'end-users' in
regulatory parlance - would have needed to start reporting their
swaps positions to data warehouses.
Most of these companies now have until July 1 to comply with
the CFTC's rules for interest rate and credit default swaps, and
until August 19 for equity, foreign exchange and commodity
swaps, the CFTC said.
Groups such as the Coalition for Derivatives End-Users had
lobbied for the delay, saying their computer systems weren't
ready for the costly measures.
The Commodity Futures Trading Commission (CFTC) is
implementing a raft of new rules to shed light on the $650
trillion swaps market, as regulators crack down on Wall Street
after the 2007-09 credit meltdown.
Swaps will need to be traded through clearing houses, which
stand between buyers and sellers to absorb risk and make trading
safer. Positions need to be reported to data warehouses to give
regulators more insight into the market.
Companies outside banking, who use swaps as a hedge against
losses on all sorts of financial assets - and not to speculate
on financial gains - had complained they faced the threat of a
The CFTC has often granted relief from its rules for a
certian period of time or certain groups of users as it rushes
to finish dozens of new rules mandated under the 2010 Dodd-Frank
law, part of a global overhaul of finance,
Last week, it allowed swaps between units of the same
company to be traded without the intervention of a clearing
house, another issue companies had lobbied for.
The CFTC has itself admitted to problems with the data, when
Commissioner Scott O'Malia said it could not upload the vast
files it already gets without crashing its computers
The data are collected by three Swap Data Repositories, run
by the CME Group Inc, the world's largest futures
exchange, the IntercontinentalExchange and the
Depository Trust and Clearing Corp (DTCC).