February 10, 2011 / 4:45 PM / 7 years ago

CFTC's Gensler seeks to calm lawmaker swap fears

* Will start finalizing rules in spring-Gensler

* “Sensitive” to concerns of end users

* Lucas promises “long series of hearings” on CFTC

By Christopher Doering and Roberta Rampton

WASHINGTON, Feb 10 (Reuters) - The U.S. futures regulator will miss some of its July deadlines to finalize dozens of regulations for the over-the-counter swaps markets, its chairman told lawmakers on Thursday.

The Commodity Futures Trading Commission will begin finalizing rules this spring, but will miss some of the deadlines set out in the Dodd-Frank bank reform law, said Gary Gensler at a House Agriculture Committee hearing.

“Some of these rules will be put in place after July,” he said.

The head of the committee, which has historical oversight of the CFTC, promised a “long series of hearings” on the CFTC’s work.

“We simply can’t afford sweeping new regulations that are poorly vetted, that impose substantial costs that outweigh the benefits for our financial system and our economy, or that are crafted in the interest of speed -- rather than in sound policy,” said Frank Lucas, the Republican chairman.

Gensler sought to assure lawmakers that new rules requiring extra capital and margin for swaps trades will apply to banks, and are not aimed at businesses that use the contracts to manage their risks.

(Editing by Alden Bentley)((roberta.rampton@thomsonreuters.com; +202 898 8376;Reuters Messaging: roberta.rampton.reuters.com@reuters.net))

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