The Commodity Futures Trading Commission now requires packaged swaps, such as standard swaps paired with "swaptions," single-name credit default swaps, secondary-market corporate bonds and other instruments, to trade through swap-execution facilities. Market participants say they are prepared for the migration of packaged swaps to SEFs.
The Commodity Futures Trading Commission has approved Tradeweb's and trueEX's made-available-to-trade submissions. The submissions include interest-rate swaps, credit default swaps and other types of swaps. Such swaps must be traded on swap-execution facilities starting next month.
The Commodity Futures Trading Commission has subpoenaed the International Swaps and Derivatives Association, ICAP and as many as 15 banks regarding possible manipulation of a swaps benchmark, sources say. The investigation is focused on brokers at ICAP who may have failed to update published market prices after trades occurred, according to the sources. "ISDA received a subpoena related to ISDAFIX and has provided information in response to the CFTC's request," the association said. "We are cooperating fully." ISDA and ICAP, which manages ISDAFIX, say the calculation process includes strict controls and oversight.
The Natural Gas Exchange has gained permission from the Commodity Futures Trading Commission to clear an expanded list of products and continue use of an accrual accounting methodology for settlement. The CFTC has amended NGX's registration as a derivatives-clearing organization.
US Commodity Futures Trading Commission Chairman Gary Gensler says a rate determined by a traded market, such as overnight indexed swaps, should replace the London Interbank Offered Rate. "Given what we know now, it's critical that we move to a more robust framework for financial benchmarks, particularly those for short-term, variable interest rates," Gensler said. "There are alternatives ... grounded in real transactions. These include the overnight indexed swap rate, benchmark rates based on actual short-term collateralised financings and benchmarks based on government borrowing rates."