The U.S. Commodity Futures Trading Commission says it will giveswaps dealers more time to comply with collateral requirementsscheduled to take effect March 1, aiming to ease concerns thatglobal markets could face disruptions without a transitionperiod.

In a no-action letter issued Monday, the CFTC said that fromMarch 1 through Sept. 1, it will not recommend enforcement actionagainst dealers for failing to comply with the new rules. Theaction doesn't delay the effective date, but simply gives marketparticipants a grace period, theagency said in a statement.

“The CFTC remains committed to the March 1 date, agreed with itsfellow U.S. and overseas regulators, for posting of variationmargin on swaps transactions between swaps dealers and theirfinancial end-user customers,” Acting Chairman J. ChristopherGiancarlo said in a statement. “Nevertheless, the facts on theground cannot be ignored that as much as 90 percent of thoseend-users are not ready to meet the new requirements.”

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