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Wall Street Wins Delay in Part of CFTC Overseas Swaps Policy 

November 17, 2014
Silla Brush, Bloomberg

Wall Street won a delay in a controversial U.S. derivatives policy that extends the overseas reach of Dodd-Frank Act trading regulations.

The Commodity Futures Trading Commission will postpone enforcing a provision applying the rules to trades structured in the U.S. that banks then book in overseas affiliates, according to a notice posted on its website today. The agency granted the delay until as late as Sept. 30, 2015.

The policy, first devised in 2013, extended the agency’s oversight and drew opposition from lobbying groups representing Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and Deutsche Bank AG (DBK) as well as overseas regulators. The groups unsuccessfully sued the CFTC to try to overturn the regulation.

Timothy Massad, the agency’s chairman, told traders in Chicago on Nov. 5 that he supported a delay to give regulators “the necessary time to consider” the issues.

Read more: Bloomberg

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