UPDATE 1-Regulatory newbies may be eased into US swaps reforms

Fri Apr 29, 2011 5:19pm EDT

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 (Repeats, fixes typo in paragraph 3)
 * CFTC considering how to phase-in swaps reform rules
 * New groups affected by rules may be given more time
 * SEC/CFTC holding meeting next week on implementation
(adds comments from CFTC official in paragraph 3)
  By Christopher Doering
  WASHINGTON, April 29 (Reuters) - Market participants not
used to strict regulatory oversight may be given more time to
comply with new swaps rules, but those with ties to big banks
could be hit sooner, under rough guidelines the Commodity
Futures Trading Commission is considering.
 The futures regulator on Friday outlined a 13 factors, or
concepts, it is considering as it determines when those
affected by sweeping new financial reform rules must comply.
The agency said implementation will be phased-in in a way that
lowers risk and minimizes cost.
  "The concepts reflect the idea that ...the implementation
of Dodd-Frank rules would not be all at once. No sort of
big-bang approach," a CFTC official said during a background
briefing for reporters.
 The CFTC said compliance dates for swap dealers, major swap
participants and others could depend on a complex set of
guidelines, including the asset class, the availability of
data; and costs and time to make necessary technological
upgrades.
  The CFTC said it is considering giving entities that have
not been previously subjected to regulatory oversight more
time. Swap dealers that may have previously been part of a bank
holding company, and were already regulated, may have an easier
time complying.
  Compliance dates for certain rules may also be dependent
on whether it links with other rules. Another option could
include having different phase-in dates for various stages of a
transaction -- such as clearing and trading requirements, data
reporting, and compliance with position limits.
  The release of the document comes ahead of an industry
roundtable the CFTC is hosting next week with the Securities
and Exchange Commission. Regulators are considering how to
implement new rules they are drafting to comply with the
Dodd-Frank law that gave them oversight of the $600 trillion
over-the-counter derivatives market.
  Throughout the rule-making process, there have been
concerns regulators are not doing enough to tell the industry
how the rules will be implemented so they can prepare.
  During the rule-making process, the futures agency has not
only been hounded by the industry, but also lawmakers and some
of its own commissioners for its fast pace, and what a few have
called an "irrational" sequence of rules.
  In a four-page release, the CFTC asked those attending the
meeting on Monday and Tuesday to consider how useful the
guidelines would be in determining the effective dates of the
rules, and what timing suggested by the guidelines might be
appropriate. Those attending also were asked to consider what
compliance issues might come up in each of the 13 ideas.
 (Editing by Lisa Shumaker and David Gregorio)







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