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.
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