Bloomberg News

Dodd-Frank Swaps Trading Rules Slated for Completion in 2012

October 03, 2011

Oct. 3 (Bloomberg) -- Dodd-Frank Act rules governing trading in the $601 trillion global swaps market won’t be completed until the first quarter of 2012, said Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission.

The CFTC and Securities and Exchange Commission are drafting rules for so-called swap execution facilities and exchanges that will handle trades for credit-default swaps, interest-rate swaps and other derivatives.

“When markets are open and transparent, price competition is facilitated and costs are lowered,” Gensler said in a speech prepared for Sefcon II, a New York conference held by the Wholesale Markets Brokers’ Association, Americas.

Gensler said the agencies are paying attention to the differences between futures and securities markets. Regulators are mindful that rules for swap execution facilities and existing rules for exchanges “do not undermine the transparent futures market,” Gensler said.

--Editors: Lawrence Roberts, Gregory Mott

To contact the reporter on this story: Silla Brush in Washington at sbrush@bloomberg.net.

To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net


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