WASHINGTON The U.S. futures regulator is considering delaying a new requirement that clearinghouses and their members report large swap positions in nearly 50 commodities so the industry can collect the required data.
On July 7, the U.S. Commodity Futures Trading Commission finalized enhanced reporting requirements for major traders in physical swaps. The CFTC rule requires clearinghouses, their members and swap dealers to make daily reports of large swaps positions in 46 commodities.
The new rule, passed to comply with the Dodd-Frank financial reform law, had been set to take effect on September 20. The agency is considering giving until November 21, 2011, for cleared swaps reporting and January 20, 2012, for uncleared swaps reporting.
Scott O'Malia, a Republican CFTC commissioner, said the industry told the agency it could give data under the current large trader format but has not adjusted to the new method.
"I think we're saying, no, we don't want it under the old format. We want it in the new format and we're willing to wait a few months to do that," said O'Malia. "This is one where we're working with the industry," he said.
The industry would still have to give the CFTC all the required data, going back to September, when they're able to report under the new large trader reporting system.
The daily reports will help fill the gap in knowledge about the commodity swaps market and help the agency police position limits until new swaps data repositories are up and running.
The CFTC has collected detailed information on swaps positions held by the largest financial traders each month through a "special call" since June 2008.
The futures regulator has estimated the number of clearing members and swap dealers that would be required to report positions of 50 or more "economically equivalent" swaps (on a futures-equivalent basis) in any one month is 200, and the number of clearinghouses is five.
(Editing by David Gregorio)