The Commodity Futures Trading Commission has approved Tradeweb's and trueEX's made-available-to-trade submissions. The submissions include interest-rate swaps, credit default swaps and other types of swaps. Such swaps must be traded on swap-execution facilities starting next month.
A division of the Commodity Futures Trading Commission has told LCH.Clearnet Group that the latter will not face enforcement action for clearing designated-contract-market or swap-execution-facility swaps, even though it is not authorized to do so. LCH.Clearnet's relief will last until March 31 or until the CFTC grants it permission to clear such swaps.
The Commodity Futures Trading Commission might be focusing on the wrong thing as it looks to develop a framework for regulating high-frequency trading, John Carney writes. Rather than focusing on increasingly complicated systems of rules, the CFTC should focus on making traders responsible for the errors of their computers, Carney writes.
The Commodity Futures Trading Commission has subpoenaed the International Swaps and Derivatives Association, ICAP and as many as 15 banks regarding possible manipulation of a swaps benchmark, sources say. The investigation is focused on brokers at ICAP who may have failed to update published market prices after trades occurred, according to the sources. "ISDA received a subpoena related to ISDAFIX and has provided information in response to the CFTC's request," the association said. "We are cooperating fully." ISDA and ICAP, which manages ISDAFIX, say the calculation process includes strict controls and oversight.