Delay on Mandate for Some Interest-Rate Swaps

Packaged trades, which make up around 50 percent of the market in notional volume, won't have to move to SEFs until May 15.

U.S. banks and other financial firms won a three-month delay for as much as half of the interest-rate swap market to meet a federal requirement to trade on platforms designed to increase competition and transparency.

The U.S. Commodity Futures Trading Commission (CFTC) announced in a letter released yesterday that trades consisting of multiple components won’t need to be transacted on swap-execution facilities, or SEFs, until May 15. The agency said it hadn’t ruled out further extending the new deadline in the Dodd-Frank Act requirement originally set to start Feb. 15.

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