Bloomberg News

Bloomberg Suit Over CFTC Swap Collateral Rules Is Dismissed (1)

June 07, 2013

Bloomberg LP’s lawsuit challenging the top U.S. derivatives regulator over rules setting higher collateral standards for swaps than comparable futures was dismissed by a federal judge.

U.S. District Judge Beryl A. Howell in Washington today ruled that Bloomberg LP, the parent company of Bloomberg News, lacks legal standing to assert its claims against the Commodity Futures Trading Commission. Bloomberg LP had argued that the requirements are arbitrary.

Bloomberg LP said in April that the commission’s regulation harms plans by Bloomberg and others to operate swap-execution facilities. The regulation “will drive liquidity away from standardized swaps to ‘swap futures’ that lack the post-trade transparency and regulatory requirements” that Congress determined “would best further the public interest,” Bloomberg said in an April statement.

Alex Gesch, a lawyer representing Bloomberg LP, declined to immediately comment on the ruling.

The case is is Bloomberg LP v. Commodity Futures Trading Commission, 13-cv-00523, U.S. District Court, District of Columbia (Washington).

To contact the reporter on this story: Joel Rosenblatt in San Francisco at jrosenblatt@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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