Late Friday afternoon, the Commodity Futures Trading Commission (CFTC) granted a delay of some new rules set up for swap execution facilities (SEF). The delay allows the SEFs to postpone trade reporting by one month for foreign exchange swaps, and by two months for equity and other commodity swaps. Yet, CFTC Chairman Gary Gensler noted that there would not be any delays for data reporting for fixed income and credit swaps, both of which make up a large portion of the market.
According to a recent article from Reuters, the move gives the SEFs more time to comply with the rules. The companies can also delay documentation and technological connectivity requirements, known as onboarding, by up to a month.
MFA will continue to monitor developments from the CFTC regarding SEF onboarding issues.