Bloomberg’s outside counsel, Eugene Scalia, yesterday submitted a letter to Gary Gensler, Chairman of the U.S. Commodity Futures Trading Commission (CFTC) to request that the Commission immediately take steps necessary to correct the disparate treatment of cleared swaps.
Absent a stay and response to their letter by end of day, March 19, 2013, Scalia indicated that Bloomberg will seek to obtain injunctive relief through the courts before the margin rules take effect on June 10, 2013.
In a statement, Scalia said:
“The process for adopting this part of the derivatives margin rule was deeply flawed. As a result, these regulatory requirements are arbitrary, with real-world implications that will harm markets and investors. It must be corrected.””
The company stated:
“This is a matter critical to the global financial markets. As a result, we have retained counsel to prepare to litigate in order to ensure that a flawed regulation – which would cause significant public harm – does not get implemented.”
A copy of Scalia’s letter can be found HERE.