* 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 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
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
(Reporting by Jonathan Spicer; Editing by Dale Hudson)