Wall Street Joins CME in Winning Delays of U.S. Swaps Rules

Swaps regs delayed as industry fights rules.

Oct. 13 (Bloomberg) -- CME Group Inc., energy traders and Wall Street banks won delays and exemptions from the U.S. Commodity Futures Trading Commission as regulations intended to improve oversight of the swaps market took effect.

Among a flurry of short-term extensions, the CFTC announced that foreign entities including the overseas branches of U.S.- based banks would not have to begin tallying swaps right away and perhaps not until the end of the year.

The delay relating to CME Group’s ClearPort system that converts swaps into equivalent futures positions as the trade is entered into the Chicago-based company’s clearinghouse. The company earns more per contract on ClearPort than any other asset class such as interest-rate, equity index or energy futures.

CME and Atlanta-based Intercontinental Exchange Inc. are trying to shift energy swaps to futures trades to help their clients avoid the threshold. While Intercontinental is ready, CME hasn’t completed the change, according to people familiar with the matter. In the three months ended in August, CME Group earned $2.65 per ClearPort trade, compared with 48 cents per trade in interest rates or 67 cents in equity indexes.

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