DTCC ponders legal action over swaps trade data rules

The Depository Trust & Clearing Corporation (DTCC) is threatening to sue a US regulator over how rival CME Group is being allowed to handle derivatives trading data.

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DTCC ponders legal action over swaps trade data rules

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Last year, as a result of Dodd-Frank, the Commodity Futures Trading Commission (CFTC) outlined plans for new rules requiring all swaps trades to be reported to trade-data repositories.

Initially, traders were told that they could use repositories of their choosing. However, in the face of a lawsuit filed by CME Group, this was changed in November, enabling the exchange operator to send data on trades it has cleared to its own repository, rather than give customers a choice of venue.

The DTCC - which does not clear swaps - argues that this is unfair and, according to the Wall Street Journal, has now threatened its own legal action, with general counsel Larry Thompson telling a conference call that the organisation "is keeping all of [its] options open, including litigation".

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