Wall Street banks and major market players said they are equipped to comply with derivatives reforms, but accused US regulators of dragging their feet on clarifying how and when they will go into effect. Regulators have released dozens of proposals to reform the swaps markets but bankers, exchange executives and traders said they need a timetable for implementation.
They have argued that sloppy rules could reduce market liquidity, push more trading to unregulated markets, and ultimately lead to higher prices for consumers. At the start of a two-day roundtable held by the US Commodity and Futures Trading Commission and the Securities and Exchange Commission to design a road map for when the reforms will be rolled out, the industry said timelines are essential and regulators are not doing enough to allow them to prepare.
Regulators have said they will use a so-called phase-in approach to the new rules, which are being crafted as part of last year's Dodd-Frank law that gave them oversight of the roughly $600 trillion over-the-counter derivatives market. The CFTC is considering a phase-in approach that would weigh many factors in determining when entities must comply.
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