The Commodity Futures Trading Commission has decided to exempt so-called inter-affiliate swaps deals from its Dodd-Frank-mandated derivatives rules.
JPMorgan Chase, Goldman Sachs, and Barclays, among other megabanks as well as swaps end-users had lobbied hard for such an exemption, according to Silla Brush of Business Week (4/3/13).
“This is another demonstration of the industry dominance of the regulatory process,” Marcus Stanley, policy director for Americans for Financial Reform, said in a statement. “Regulators are willing to accommodate industry even to the extent of dropping requirements that financial entities follow sound business practices.”
In explaining its decision, the CFTC spoke of “comments expressing concern that a variation margin requirement will limit the ability of U.S. companies to efficiently allocate risk among affiliates and manage risk centrally.”