The Treasury Department faces wide criticism for exempting foreign exchange swaps and forwards from new derivatives rules, according to Zachary Warmbrodt of Politico.

Treasury has decided to “exempt one of the largest sections of the off-exchange derivatives market… from newly implemented requirements for centralized clearing and trading,” Warnbrodt wrote. His piece, published in a subscriber-only zone of Politico, cited criticism from industry groups as well as reform advocates.

“The foreign exchange markets exempted by this determination involve tens of trillions of dollars in notional value,” AFR Policy Director Marcus Stanley said, in a statement quoted by Politico. “This determination thus exempts a significant derivatives market from key Dodd-Frank reforms meant to protect the public from financial instability.”

“The foreign exchange derivatives will still be subject to other elements of the 2010 Dodd-Frank financial regulatory reform law,” the article added, noting that AFR was “awaiting further details on how regulators would use the law’s anti-evasion authority to ensure traders aren’t skirting protections in related derivatives markets.”