Trade groups representing the biggest U.S. financial companiessaid regulators should re-propose derivatives rules required by theDodd-Frank Act to give banks, swap dealers and asset managers moretime to review them.

Re-proposing rules would delay them by “months, not years, andthe costs of any such delay will be far outweighed by thebenefits,” groups including the Securities Industry and FinancialMarkets Association and the International Swaps and DerivativesAssociation wrote to the Securities and Exchange Commission and theCommodity Futures Trading Commission.

“Allowing for more than one round of comments helps ensure thatmarket participants can more fully assess the implications of a setof rules in their entirety,” the seven groups said in theirletters.

Dodd-Frank, the rules overhaul enacted in July, requires the SECand CFTC to write regulations to improve transparency and curb riskin the $601 trillion over-the-counter swaps market afterunregulated trades exacerbated the 2008 credit crisis. The CFTC,which is responsible for all but security-based swaps, has proposedmost of its planned rules and aims to complete them this year, CFTCChairman Gary Gensler has said.

JPMorgan Chase & Co., Bank of America Corp., Goldman SachsGroup Inc., Morgan Stanley and Citigroup Inc. executed 96 percentof the $298 trillion in over-the-counter derivatives trades by thetop 25 U.S. bank-holding companies as of Dec. 31, according to theOffice of the Comptroller of the Currency.

In re-proposing the rules, regulators should offer a timetablefor implementing them and guidance on how Dodd-Frank applies totrades conducted outside the U.S., the groups said in the May 26letter to the CFTC and the May 31 letter to the SEC.

In addition to Sifma and ISDA, the letters were signed by theU.S. Chamber of Commerce, the Futures Industry Association, theFinancial Services Roundtable, Institute of International Bankersand the Insured Retirement Institute.

Scott Schneider, a CFTC spokesman, and John Nester, an SECspokesman, declined to comment on the industry groups' letter.

Bloomberg News