CFTC considers phase-in of trade-venue reporting due to start Wednesday

By Neil Roland


The US Commodity Futures Trading Commission is considering a phase-in of reporting requirements fro the new trading platforms due to start operating Oct. 2, as one commissioner called for a two-month delay.

CFTC Chairman Gary Gensler said that the agency is deciding whether to grant relief for swap execution facilities (SEFs), including Bloomberg and Javelin Capital markets, due to go live Wednesday. 

The CFTC is focusing on whether to delay reporting requirements for foreign currency and credit-default swaps, he told reporters after a speech in Washington on Friday.

“Reporting is one area that we are looking very closely at,” Gensler said.  “We are looking at some asset classes.”

These reports are to be made to data warehouses such as CME Group and Depository Trust & Clearing, where the trades can be monitored by regulators. 

Gensler didn’t say why the 17 new trading venues, or SEFs, may not be prepared to handle trading in foreign exchange or energy derivatives next week. 

He said they are well-prepared to report interest-rate swaps.


-Chilton: 2 Month Delay –

Commissioner Bart Chilton, a Democrat, said a two-month reporting relief should be granted without regard for asset category.

“We have heard from many quarters that, absent providing some relief, we are at risk of causing serious market disruptions an possible serious liquidity crises,” he said in a statement.

Industry groups have been pushing for relief, saying the systems of SEFs, brokers and banks are not prepared to go live with the trading next week. 

Trade reporting to electronic warehouses has been handled since Jan. 1 by the banks involved with the trades.  This responsibility is due to switch to the SEFs on Oct.2.  

SEFs were mandated by the 2010 Dodd-Frank Act to increase transparency and competition in the $633 trillion derivatives market.  These trades had been conducted bilaterally rather than exposed on an exchange.