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  • September 16, 2010

    Gensler Says One-to-One Swap Trading Unlikely to Meet New Rules

    By Matthew Leising

    Trading systems for over-the-counter derivatives that only link one investor to one bank probably won’t be allowed under new regulations, said Commodity Futures Trading Commission Chairman Gary Gensler.

    Swap industry executives yesterday told CFTC staff that mandatory trading systems in the $615 trillion market must be flexible to allow for several ways to buy and sell the contracts. Some of those systems include electronic trading that allow a swap user to trade with one dealer, said Ben MacDonald, global head of trading at Bloomberg LP, the parent company of Bloomberg News.

    The Dodd-Frank Act, enacted in July, defines trading on a swap-execution facility, or SEF, as being done between multiple users. The Bloomberg system includes a “single dealer platform,” among other trading options, MacDonald said…

    Read Full Article on Bloomberg.

    Last Updated: September 17, 2010