Agency differences a focus in SEF rule - Gensler
* CFTC, SEC plans differed for swap execution facilities
* Requests for quotes and conflict of interest in focus
* CFTC hopes to vote on final SEF rule by Q1 2012-Gensler
NEW YORK, Oct 3 (Reuters) - The U.S. derivatives regulator will focus on differences between its proposal for swap execution facilities (SEFs) and that of the Securities and Exchange Commission as it drafts a final rule, expected early next year, the regulator's head said on Monday.
"We are hopeful that we'll be able to consider the SEF rules in the first quarter of 2012," Gary Gensler, chairman of the Commodity Futures Trading Commission, said in prepared remarks to a Wholesale Markets Brokers' Association conference in New York.
The CFTC and the SEC are responsible for writing new rules for the approximately $500 trillion private swaps market, based on last year's sweeping U.S. Dodd-Frank legislation of Wall Street reforms in the wake of the financial crisis.
Gensler focused on a few differences between the two agencies on rules for SEFs, the venues that will handle trading of much of the world's swaps. Two of them were the minimum number of requests for quotes (RFQs) that will be required before a trade is made; as well as how responses to the RFQs will interact with resting orders.
The CFTC proposed five RFQs while the SEC -- which received more support from industry players -- proposed one.
"We're sorting through both of those questions as we move toward a draft final rule," Gensler said in the prepared remarks. He said another area of focus is differences between the two agencies' proposals on governance and conflict of interest.
The comments shed some light on areas of possible compromise between the CFTC and the SEC as trading venues, dealers, funds and end-users of the swaps prepare for the new market. The CFTC has delayed the date for the final SEFs rules twice. (Reporting by Jonathan Spicer; Editing by Dale Hudson)
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