CHICAGO Nov 29 The Depository Trust and
Clearing Corp on Thursday lashed out at a regulator's decision
to consider a rule change that would make it easier for DTCC
rival CME Group to keep its customers' swaps data to
The U.S. Commodity Futures Trading Commission on Wednesday
said it was seeking public comment on a CME rule that would
require traders clearing swaps at CME's clearinghouse to report
data on those swaps to CME's own swap data repository.
The CFTC regulates over-the-counter swaps and is writing
rules that will radically change how they are transacted.
It had previously issued guidance banning a clearinghouse
operator from requiring its customers to use its captive swap
data repository, and making it clear that the choice of data
repository is up to the customers. The CFTC withdrew that
guidance on Wednesday.
"The Commission's action late yesterday was an unexplained
and an abrupt reversal of course," the DTCC, which runs a rival
swaps data repository, said in a statement.
"This action is inconsistent with the Commission's previous
actions, and will cause market participants to question the
finality of any Commission rule or interpretation."
Under new CFTC rules, most contracts in the opaque $650
trillion swaps market must be reported to a data repository to
make it easier for regulators to keep track of them. Critics say
a lack of transparency in the swaps market exacerbated the
global financial crisis in 2008.