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Swap users in US get more time to report trades

Companies won delays in Dodd-Frank Act requirements to report derivatives trades they use to hedge business risks. The so-called end users, who trade as clients of banks, need the delay to test data systems, the Commodity Futures Trading Commission said in a Press Release on 8 April. The rules were to take effect on 9th.

Users of interest-rate and credit swaps will have until July 1 to comply with the reporting rule, according to the CFTC statement. The deadline for users of equity, foreign exchange and other commodity swaps was extended until Aug. 19. Non-financial counter-parties gained an extension to Oct. 31 for certain reporting requirements for all swap asset classes.

The CFTC and Securities and Exchange Commission are implementing derivatives provisions of Dodd-Frank, the 2010 regulatory overhaul, after largely unsupervised trades helped fuel the 2008 credit crisis. New rules planned for the $639 trillion global swaps market require that trade information be reported to so-called swap data repositories that function as central record-keepers.

Lobbying groups representing Barclays Plc, JPMorgan and Goldman Sachs Group Inc. have also urged that the CFTC delay the reporting rules for their clients. In a March 28 letter to the CFTC, the International Swaps and Derivatives Association Inc. and Financial Services Roundtable said bank clients need a delay because they lack the resources to comply with the rules.

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