Comment Period for Swap Dealer Capital Rule Extended 60 Days

By Richard Hill

The comment period on a CFTC rule that would set capital requirements for swap dealers has been extended for 60 days.

The rule would require dealers and major swap participants that aren’t subject to banking regulations to set aside assets to absorb losses.

Acting Commodity Futures Trading Commission Chairman J. Christopher Giancarlo has said that having to set aside too much capital could hurt banks’ ability to trade derivatives and act as liquidity providers. Although he voted as a commissioner to seek comment on the proposal, he also expressed reservations about its possible effect on smaller dealers.

The comment period for the proposal was set to expire March 16 but now will run through May 15. The CFTC said the Futures Industry Association and Securities Industry and Financial Markets Association asked for the extension citing the proposal’s importance and complexity.

To contact the reporter on this story: Richard Hill in Washington at rhill@bna.com

To contact the editors responsible for this story: Phyllis Diamond at pdiamond@bna.com; Seth Stern at sstern@bna.com

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