Regulators are considering allowing banks an extended deadline of July 2016 to meet a Dodd-Frank Act requirement to separate portions of their swaps-trading business from their government-insured units, sources say.
ICAP says it hopes to establish a swaps-trading platform, having filed with the Commodity Futures Trading Commission to become a swaps-execution facility. The move was expected because the British firm is a dominant swaps broker.
Deals that resolve disputes with MF Global Holdings' U.K. affiliate should clear the way to step up cash payouts to clients and creditors, a bankruptcy trustee says. Trustee James Giddens announced that he had negotiated the two accords, which could lead to the return of $500 million to $600 million to the MF Global estate.
Remco Lenterman, head of the FIA European Principal Traders' Association, continues to challenge critics of high-frequency trading by touting the benefits of such strategies. "We make the market cheaper and more efficient for the end user," Lenterman says.
The Commodity Futures Trading Commission approved a final swaps-trade reporting rule that imposes a "real-time" price-disclosure delay of a half-hour. The delay will eventually drop to 15 minutes. "Leading up to the financial crisis, there was no required reporting about swaps trading, and this lack of market transparency made the risk that had spread throughout the financial system all the more difficult to identify," CFTC Chairman Gary Gensler said.