As the war of words between the DTCC and the CME continues, Galen Stops argues that it is being driven by business rivalry, not customer concern.
The battle taking place between the Depository Trust &
Clearing Corporation (DTCC) and the Chicago Mercantile Exchange
(CME) over swaps reporting has heated up in recent weeks with
the Commodity Futures trading Commission (CFTC) currently stuck
in the middle of the debate.
Despite the apparent concern for the welfare of the market
from both sides, this is really an argument between two
competitors determined not to hand their opponent an
In November 2012 the CME sought approval from the CFTC as it
attempted to implement Rule 1001. This rule would require all
swaps cleared by the CME to also be reported to the CME's swap
data repository (SDR).
Cue outrage from the DTCC, which sent a letter on January 8
to the CFTC arguing that "the proposed rule would
inappropriately tie CME's swap data repository (SDR) and
clearing services and eliminate the ability of market
participants to choose their preferred SDR."
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