No Delay in Monday Swaps Deadline

Gensler rules out change to June 10 mandate for clearinghouse backing of swaps trades.

The Commodity Futures Trading Commission won’t delay enforcement of a June 10 deadline for swaps-market participants from hedge funds to small banks to start having their trades backed by clearinghouses, said Chairman Gary Gensler.

“They will be expected to clear come Monday,” Gensler told reporters today at a Sandler O’Neill & Partners LP conference in New York.

Swap-buyers represented by the Investment Company Institute, Securities Industry and Financial Markets Association, and Investment Adviser Association have requested a delay in enforcing the Dodd-Frank Act rule because of incomplete protections for collateral. The regulation is the second phase of clearing under the law intended to reduce risk in the swaps market.

Smaller banks subject to the deadline also have said they aren’t ready to meet the requirement and have requested a delay.

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