CFTC making progress on swaps market rules: Gensler

WASHINGTON (Reuters) - The head of the U.S. futures regulator said on Friday his agency has made a "down payment" on efforts to bring more transparency to the swaps market but more work needed to be done.

The CFTC is working to complete a regulatory framework for the previously opaque $700 trillion over-the-counter derivatives market required under the 2010 Dodd-Frank law.

"Hedgers, investors and speculators will be able to meet in an open and competitive market, benefitting from seeing available bids and offers and gaining liquidity," Gary Gensler, the chairman of the Commodity Futures Trading Commission, said in prepared remarks to the American Bar Association's Committee on Derivatives and Futures Law.

"These rules will be critical in bringing pre-trade transparency to the swaps market."

Gensler said as the CFTC finalizes reforms for trading platforms, he wanted to finalize rules on designated contract markets and swap execution facilities to enhance transparency in trading.

The regulator has so far finalized more than 20 rules and has laid out an agenda to complete about 20 more.

Gensler expected the CFTC would consider putting out for public comment a "concept release" concerning the supervision of market participants with direct market access. "These concepts will be designed to address potential market distortions that high frequency traders and others who have direct market access can cause," he said.

The CFTC, however, is facing a court challenge as it attempts to rewrite the rulebook for Wall Street.

The financial industry said on Tuesday it would soon seek to temporarily block regulations that attempt to crack down on speculation in the U.S. commodities markets.

Financial industry groups are challenging rules adopted in October by the CFTC that set position limits on the number of commodity futures and swaps contracts that a trader could hold.

(Reporting By Timothy Gardner; Editing by David Gregorio)