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US SEC treads softly in swaps market transparency

Feb 03 2011 Reuters

US securities regulators proposed giving investors more anonymity in making derivatives trades than similar proposals by futures overseers, while still aiming to shed more light on prices. The Securities and Exchange Commission unanimously agreed on Wednesday to seek public comment on the proposal that would implement a key provision in the Dodd-Frank Wall Street reform law, moving many privately-negotiated swaps onto regulated trading platforms. The provision aims to help customers such as asset managers and hedge funds to tell if they are getting good prices from dealer banks such as JPMorgan and Goldman Sachs. But the roughly $600trn global industry has urged regulators against too much transparency, saying forcing swaps onto platforms modeled like traditional exchanges might harm clients by giving away their trading strategies. The Dodd-Frank act splits responsibility for swaps between the SEC and the Commodity Futures Trading Commission. The SEC has

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