The U.S. Commodity Futures Trading Commission proposed exemptingtrades between units of the same company from Dodd-Frank Actclearinghouse rules designed to limit risk in the $648 trillionswaps market.
In a 3-2 private vote, CFTC commissioners proposed freeingso-called interaffiliate trades from requirements that swaps beguaranteed at central clearinghouses that protect buyers andsellers against defaults. The proposal would require collateral tobe exchanged between affiliates to reduce trade risks.
“Though transactions between affiliates pose risk, much of therisk relates to their affiliates rather than external parties,”CFTC Chairman Gary Gensler said in a statement yesterday.
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