CFTC May Delay Swaps Rules

Regulators’ proposal would postpone Dodd-Frank rules until July 2012.

Rules scheduled to take effect last July for the $601 trillion swaps market may be delayed as long as a year under a proposal by the U.S. Commodity Futures Trading Commission.

At a meeting yesterday in Washington, the agency’s five commissioners were set to consider a proposal to postpone until as late as July 16, 2012, rules that were required to take effect in mid-July under the Dodd-Frank Act.

If finalized, the rule would be the second time the agency has delayed the effective date of Dodd-Frank rules. The proposal will be open to public comment for 30 days; the commission is expected to finalize the postponement by the end of the year.

In July, the agency approved an order granting “temporary relief” from legal requirements to give the CFTC more time to write dozens of rules aimed at reducing risk and boosting transparency after largely unregulated trades helped fuel the 2008 credit crisis.

CFTC Chairman Gary Gensler said on Oct. 3 that the agency would likely vote in the first quarter of 2012 on several Dodd-Frank rules, including regulations governing exchanges and other trading facilities.

The regulations will govern trades conducted by Goldman Sachs Group Inc., JPMorgan Chase & Co., Cargill Inc. and other companies.



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