JPMorgan Chase & Co., Goldman Sachs Group Inc., and theworld's largest banks won rollbacks in final Dodd-Frank Act rulesthat promise to transform the private swaps market by increasingcompetition.

The Commodity Futures Trading Commission voted 4-1 in Washingtonlast week on rules determining how buyers and sellers must tradecredit-default, interest-rate, and commodity swaps in a $633trillion global market. The rule weakened a proposal by reducingthe number of price quotes buyers must seek on swap-executionfacilities, after banks and asset managers said a five- quoterequirement was onerous and would impair trading.

The vote on the rules represents “the start of a process thatcould eventually lead to a seismic change in trading ofover-the-counter derivatives,” Richard Repetto, an analyst withSandler O'Neill & Partners LP in New York, said in a telephoneinterview before the meeting. “It is a switch from an opaque,bilateral market to something where there is some pricetransparency and a more open and automated market.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.