April 22 CME Group said Monday that it
mistakenly allowed "a small number" of traders to see
confidential data on hundreds of swaps transactions that it
collects under new rules mandated by Wall Street reform
Details on 500 swaps transactions tied to agriculture and
energy were inadvertently released to some traders on April 1,
CME said, after the Chicago-based exchange operator implemented
an enhancement to its swaps-data warehousing service that
contained a bug. CME corrected the problem within two days, it
said in a statement.
Global lawmakers and regulators began clamping down on the
opaque swaps industry after the 2007-2009 financial crisis,
forcing much of the $600 trillion industry into regulated
clearinghouses and requiring a wider distribution of data on
swaps than had ever been available before.
Under new rules, traders are supposed to be able to access
data on price and volume for many swaps transactions, although
the identities of the traders involved are supposed to be kept
But after CME rolled out its new software, some traders
could see who had traded with whom. CME learned of the problem
the following day from affected customers, and fixed it by April
3, it said.
The 500 disclosed transactions represent only a fraction of
a total of nearly 1 million, CME said, but nevertheless could
deal a blow to confidence in the ability of swaps data
warehouses to protect their users' anonymity.
"All impacted customers were notified," CME said. "We regret
this incident occurred, as maintaining the confidentiality of
market participant data at all times is vital to the operation
of our markets and systems."
The Wall Street Journal earlier reported on CME's
inadvertent disclosure of the swaps data.