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 meant to boost competition and transparency.
Trades consisting of multiple components won't need to be transacted on swap-execution facilities, or Sefs, until May 15, the Commodity Futures Trading Commission said in a letter released Monday. 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.
The delay, which estimates have shown will affect a quarter to a half of the interest-rate swaps market, "allows us more time to figure out what to do" with the packaged trades, Mark Wetjen, the CFTC's acting chairman, said at a meeting in Washington.
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