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.

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.

© 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.