CME Group Inc., the world's largest futures market, sued theU.S. Commodity Futures Trading Commission, challengingcleared-swaps reporting requirements imposed under the Dodd-Frankfinancial reform legislation.

CME, in a lawsuit filed yesterday in federal court inWashington, seeks a permanent injunction against rules requiringregistered derivatives clearing organizations, or DCOs, such asitself, to provide nonpublic reports of cleared swap transactionsto a new swap data repository established under the act. CME hasuntil Nov. 13 to comply.

The rules “would impose costly, cumbersome, and duplicativerequirements on DCOs,” CME said in the complaint.

CME said it objects to the reporting requirement because thedata is already “directly and readily available” to the CFTCthrough the exchange. Chicago-based CME calls the rule unnecessaryand duplicative and argues that the commission failed to saywhether it had conducted a cost-benefit analysis of theregulation.

The case is one of several brought by the financial industry asit pushes back against tighter regulations passed in the wake ofthe 2008 credit crisis. In September, a federal judge rejected acommission rule curbing derivatives speculation.

Steve Adamske, a CFTC spokesman, declined to comment on thelawsuit.

CME Group guarantees interest-rate and credit-default swaps withits clearinghouse. The company also backs futures trades based oninterest rates, equity indexes, commodities and currencies.

The Dodd-Frank Act, the financial overhaul enacted in 2010, aimsto reduce risk and increase transparency in the $601 trillion swapsmarket after largely unregulated trades contributed to the 2008credit crisis. Clearinghouses, which are capitalized by theirmembers, guarantee trades by standing between buyers andsellers.

The case is Chicago Mercantile Exchange Inc. v. U.S. CommodityFutures Trading Commission, 12-cv-01820, U.S. District Court,District of Columbia (Washington).

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