CFTC mulls delay on rules impacting energy swaps-Bloomberg


WASHINGTON, Oct 11 (Reuters) - The U.S. Commodity FuturesTrading Commission may delay a rule set to take effect on Fridaythat would impact cleared energy swaps, according to a report byBloomberg on Thursday.

New rules that were mandated by the 2010 Dodd-Frankfinancial oversight law require firms that have $8 billion ormore in annual swap dealing activity to register with regulatorsas swap dealers, bringing them under additional scrutiny.

But CME Group Inc and IntercontinentalExchange Inc, which offer clearing for energy swaps, are vying torecast those energy swaps as futures in hopes they won't counttoward the $8 billion threshold. Clearinghouses stand in betweenparties to guarantee trades.

To help smooth the transition from swaps into futures, theCFTC is considering whether to allow a 60-day delay in the swapsrules, Bloomberg said, citing people with knowledge of thematter.

The article did not elaborate on which swaps rules could bedelayed.

CME Group declined to comment. ICE could not immediately bereached for comment. The CFTC did not return calls or e-mailsseeking comment.

The CFTC previously said in September that firms would have60 days to register as swaps dealers starting from the end ofthe month in which they hit the $8 billion transactionsthreshold.

That means the first firms to hit the threshold would nothave to register until the end of the year.

Dodd-Frank gave the CFTC authority to regulate the $650trillion over-the-counter swaps market after swaps played acentral role in the 2007-2009 financial crisis.

The agency has faced some criticism for its handling of thenew rules, including from firms that expressed frustration overa lack of clarity about when the rules would kick in and how tocomply.

(Reporting by Sarah N. Lynch and Emily Stephenson; Editing byBob Burgdorfer)