Bloomberg News

CME Among Clearinghouses Winning Jan. 14 Margin Delay From CFTC

November 01, 2012

CME Group Inc. (CME:US), Intercontinental Exchange Inc. and other swaps clearinghouses will have an extra two months to implement new collateral rules required by the main U.S. derivatives regulator under the Dodd-Frank Act.

The U.S. Commodity Futures Trading Commission delayed rules governing margin to Jan. 14 from Nov. 8 to give the industry more time to resolve technology problems, Ananda Radhakrishnan, director of the division of clearing and risk, said today in a letter to clearinghouses. Clearinghouses sought an extension from the CFTC in a letter on Oct. 30.

Under the CFTC rules, clearinghouses are required to collect initial margin on a gross basis instead of netted to account for offsetting positions.

The CFTC is writing rules required by Dodd-Frank to move more swaps traded by Goldman Sachs Group Inc. (GS:US), JPMorgan Chase & Co. (JPM:US) and other firms into clearinghouses that collect collateral from buyers and sellers to reduce default risk.

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


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Companies Mentioned

  • CME
    (CME Group Inc/IL)
    • $92.95 USD
    • 0.59
    • 0.63%
  • GS
    (Goldman Sachs Group Inc/The)
    • $193.43 USD
    • 0.15
    • 0.08%
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