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CFTC Must Defend Claim It Stymied Competition 

March 19, 2014
Philip A. Janquart, Courthouse News Service

A federal judge preserved parts of a lawsuit that claims the U.S. Commodity Futures Trading Commission is squeezing an independent company out of the data repository business.

The 2010 Dodd-Frank Consumer Protection Act was enacted, in part, to improve regulation and transparency of previously unregulated markets in the wake of the 2008 financial crises. The Act gave the commission authority to regulate the swaps market and has since developed new regulations that improve transparency and reduces risk associated with it.

A swap is a financial derivative wherein two parties enter into an agreement to exchange one type of cash flow for another. Typically, swaps are used as a hedging tool to protect the parties from adverse movements in interest rates or market prices.

Read more: Courthouse News Service

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