Already a Bloomberg.com user?
Sign in with the same account.
Feb. 16 (Bloomberg) -- The U.S. Commodity Futures Trading Commission scheduled a Feb. 23 vote on final Dodd-Frank Act regulations defining which banks, hedge funds and energy companies will be designated swap-dealers.
The regulation, first proposed in 2010, would lead companies to face higher capital and margin requirements for some types of derivatives transactions. Energy companies have lobbied the CFTC that they shouldn’t be designated as dealers because they use derivatives to hedge risks rather than to facilitate trading.
The CFTC is planning on amending the proposed rule’s threshold for permissible dealing activity before a company is defined as a dealer. The rule would increase the threshold to $2 billion from $100 million, according to a person briefed on the matter who spoke on condition of anonymity because the rule isn’t public.
The regulation could still change before the final vote. Shell Energy North America LP and Vitol Inc. are among energy companies that have lobbied the CFTC to amend the dealer regulation.
--Editors: Maura Reynolds, 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: Maura Reynolds at mreynolds34@bloomberg.net