CFTC's O'Malia releases consultation
Friday 29 July 2011 - by Andrew Hickley
Commodity Futures Trading Commissioner Scott O'Malia has issued his own consultation asking about guidance the agency should provide to swaps clearers.
The letter, which is not an official CFTC request for comment, asks whether one of five categories used to determine if a swap must be cleared is awarded higher weight than other groups.
The categories include the effect that clearing would have on mitigating systemic risk, as well as the impact clearing would have on market competition.
He also asks if any of these categories should be weighted higher than another, and the reasons for this.
In addition, he queries whether different asset classes, such as interest rate swaps and credit default swaps, should be considered differently within these five categories.
Finally, he asks about the criteria the commission should use to extend a temporary clearing requirement on a certain class of swaps.
Interested parties are "encouraged" to respond to the consultation by 14 September.
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