Swap Users Get More Time to Report Trades

The CFTC says companies need more time to test data systems.

Energy and manufacturing companies won delays in Dodd-Frank Act requirements to report derivatives trades they use to hedge business risks. The so-called end users, who trade as clients of banks including JPMorgan Chase & Co. and Citigroup Inc., need the delay to test data systems, the Commodity Futures Trading Commission said in a press release yesterday. The rules were to take effect today.

Users of interest-rate and credit swaps will have until July 1 to comply with the reporting rule, according to the CFTC statement. The deadline for users of equity, foreign exchange and other commodity swaps was extended until Aug. 19. Non-financial counterparties gained an extension to Oct. 31 for certain reporting requirements for all swap asset classes.

“I am troubled by the arbitrary and ad-hoc manner in which this relief was provided,” CFTC Commissioner Scott O’Malia, a Republican, said in a statement. “The application of date, product and participant distinctions makes compliance and implementation confusing for the end users.”

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