The Commodity Futures Trading Commission now requires packaged swaps, such as standard swaps paired with "swaptions," single-name credit default swaps, secondary-market corporate bonds and other instruments, to trade through swap-execution facilities. Market participants say they are prepared for the migration of packaged swaps to SEFs.
Establishing agreement among countries and harmonizing rules for Group of 20 reform will take time, says Timothy Massad, chairman of the Commodity Futures Trading Commission. He supports dual registration and cooperation among national regulators and says clearinghouse oversight is an "ongoing area of focus."
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.
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.
The Natural Gas Exchange has gained permission from the Commodity Futures Trading Commission to clear an expanded list of products and continue use of an accrual accounting methodology for settlement. The CFTC has amended NGX's registration as a derivatives-clearing organization.