Swaps Users Urge CFTC to Drop Quote System to Get Better Prices
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Swaps users including Dow Corning Corp., Eastman Kodak Corp. and U.S. Steel Corp. want regulators to require prices be made public prior to trading, overturning a proposed rule that would limit distribution of the data.
A planned request-for-quote system that can limit the number of investors who see swaps prices should be abandoned due to the Dodd-Frank Act financial reform’s goal of making over-the-counter derivatives more transparent, the Industrial Energy Consumers of America said in a letter today to the Commodity Futures Trading Commission. The CFTC is writing rules to define how swap-execution facilities will be used for trading.