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CME Group says it withdraws swap data reporting rules complaint

Nov 30 2012 Ann Saphir, Reuters

CME Group on Thursday pulled its lawsuit against the Commodity Futures Trading Commission after the U.S. regulator withdrew rules that would have stopped CME from warehousing data generated by its swaps clearing business. New CFTC rules require most contracts in the opaque $650 trillion swaps market to be reported to a data repository to remedy a lack of transparency in the swaps market that critics say exacerbated the global financial crisis in 2008. The CFTC, which regulates over-the-counter swaps, had issued guidance banning a clearinghouse operator from requiring customers to use its captive swap data repository. CME sued to block those rules on Nov. 8, saying they contradicted other rules written under the Dodd-Frank financial reform law. The law requires standard swaps to be traded on regulated platforms and routed through clearinghouses, which stand between parties to guarantee their trades. On Wednesday, the CFTC withdrew its ban and said it would seek

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