CFTC hit with numerous requests to delay derivatives rules

The U.S. Commodity Futures Trading Commission is facing a slew of requests to ease or delay Dodd-Frank derivative rules in the face of an Oct. 12 start date.

On Oct. 12, companies are required to start totaling their derivatives trades to determine if they will be face the highest capital, collateral and trading standards under Dodd-Frank swap dealers rules. That designation will lead to lower profits, Bloomberg reports.

Goldman Sachs Group Inc., JPMorgan Chase & Co. and other financial firms are all expected to be designated swap dealers.

Bunge Ltd. and Archer Daniels Midland Co., represented by trade associations, are seeking to delay swap-dealer rules for non-banks, while bank and asset managers are asking regulators to confirm if foreign exchange derivatives are subject to the rules.

Additionally, Ford Motor Credit Co. and Barclays Plc have met with CFTC staff in an attempt to clarify if financial entities utilized for asset-backed securities are exempt.

“We urgently request that the commission delay the effectiveness of all rules until clarifying guidance, which in many cases has been promised by the commission, can be issued,” the Financial Services Roundtable said, according to Bloomberg. “Without resolution on these points, our members cannot understand how to comply with the new rules, and accordingly cannot comply. This is in no one’s interest.”

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