The U.S. Commodity Futures Trading Commission should delay an Oct. 2 registration deadline and give swap-trading platforms more time to meet Dodd-Frank Act regulations, Commissioner Scott O’Malia said.
Trading platforms, known as swap-execution facilities, are rushing to meet the deadline and don’t have technology in place to meet new data-reporting and other requirements, O’Malia said in a speech prepared for the Global Forum for Derivatives Markets in Geneva. The deadline may impact market liquidity particularly on overseas-based platforms, he said.
“Market participants would benefit from getting a time-limited extension to allow for a smooth transition to these new execution venues,” O’Malia said in the speech.
Dodd-Frank, the 2010 financial-regulatory overhaul, seeks to increase competition and transparency in the $633 trillion swap market after largely unregulated trades helped fuel the 2008 credit crisis. The agency has provisionally registered swap execution facilities, known as Sefs, run by operators including Tradeweb Markets LLC, MarketAxess Holdings Inc. (MKTX), GFI Group Inc. (GFIG) and Bloomberg LP, parent of Bloomberg News.
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