Swap-Trading Platforms Could Face Fewer Limits

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Under a bipartisan bill introduced in the U.S. House, derivatives regulators would be barred from adopting Dodd- Frank Act rules restricting the number of market participants who must receive or respond to price quotes on new trading facilities in the $601 trillion swaps market.

The bill aims to require the U.S. Commodity Futures Trading Commission and Securities and Exchange Commission to allow for flexibility in the types of trading methods on so-called swap execution facilities.

The CFTC proposed a rule in December that would allow participants in the trading facilities to request price quotes from a minimum of five possible sellers. The SEC on February 2nd proposed a rule that would allow swap buyers to request a quote from a single seller.

The House legislation would also bar regulators from requiring trading platforms to display or delay quotes for any amount of time and prohibit agencies from restricting the methods of commerce that may be used to execute the transaction.

Anna Timone (195 Posts)

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