CFTC proposes block-size rule for swaps trading

The Commodity Futures Trading Commission has proposed a methodology for determining the size of block trades in the over-the-counter derivatives markets. The methodology would determine how large trades are executed on swap-execution facilities and when information about those trades is reported to the public. CFTC staff estimated that only 6% of the trading in interest-rate and credit default swaps will quality as block trades. Republican members of the CFTC warned that the proposal could undermine the agency's efforts to improve transparency in the swaps market.

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