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CFTC Will Give Banks 2 Minutes to Accept or Reject Cleared Swaps

Swaps dealers will have two minutes to accept or reject trades that will be sent to clearinghouses starting next month, the Commodity Futures Trading Commission said in the most-detailed requirement about timing to date.

The time allowed for trade approval will fall to one minute 90 days after the CFTC rules are published in the Federal Register, according to a Sept. 21 e-mail sent by Ananda Radhakrishnan, director of the division of clearing and risk. Banks including JPMorgan Chase & Co., Goldman Sachs Group Inc., Citigroup Inc. and Morgan Stanley have argued that the technology to instantly verify the credit and risk allowance of their customers doesn’t exist and asked the CFTC to reconsider.