| Boca Raton, Fla, March 13
Boca Raton, Fla, March 13 The U.S. swaps
regulator will outline its plan next week to clean up trading
data, a top official said on Thursday, as it struggles to make
the market less opaque after the credit crisis.
The Commodity Futures Trading Commission, which was put in
charge of the $630 trillion global off-exchange derivatives
market after the crisis, may come up with a guidebook, or tweak
its rules, one of its members told Reuters.
"I had asked for a cross-divisional working group to put
together a kind of a fixing list and put it out for comment,"
Commissioner Scott O'Malia said in an interview.
"That draft is for the Commission right now. I've provided
input on it and it should be out next week," he said on the
sidelines of a derivatives industry conference.
The agency, whose powers were vastly expanded after the
2007-09 crisis, has repeatedly said a deluge of data has
overwhelmed its computers since reporting started a year ago,
and that it cannot adequately monitor risk.
The data was so poor, O'Malia plans to say in a presentation
later in the day, that the agency would be unable to tell which
companies it oversees if the threshold for annual trading volume
that determines the cut-off dropped to $3 billion from $8
The drop is not expected to happen for at least another
year, and will first require a study by the agency, but O'Malia
used the point to illustrate the limited grasp the regulator's
staff have over the vast new data set.
Global regulators in January highlighted a lack of reliable
data as a major concern, five years after the sudden break down
in the financial system highlighted the limited insight
watchdogs have into bank risks.
In a report to the Financial Stability Board - which groups
together supervisors of the G20 nations with the strongest
economies - they said countries and companies should make
improving data quality a top priority.
The CFTC was put in charge of the swaps trading market as
part of the 2010 Dodd-Frank overhaul of Wall Street, and has
since written a raft of new rules to make the system less
vulnerable to sudden shocks.
The industry, largely unregulated before the crisis, is
dominated by large Wall Street banks such as Citigroup Inc
, JPMorgan Chase & Co and Bank of America Corp