On March 6, the Commodity Futures Trading Commission (CFTC) approved a request from the Chicago Mercantile Exchange Inc. (CME) to adopt new Chapter 10 and new Rule 1001 of CME’s rulebook.
In DTCC’s view, the rule inappropriately ties CME’s swap data repository (SDR) and clearing services, and eliminates the ability of market participants to choose their preferred SDR.
DTCC disagrees with the Commission’s approval of CME Rule 1001 because it is inconsistent with the principles of the Dodd-Frank Act and the Commission’s Part 45 regulations. “Rule 1001 will cripple market participant choice, is anti-competitive and compromises regulators and market participants’ ability to understand, assess and manage systemic risk effectively,” said Larry Thompson, DTCC Managing Director and General Counsel.
DTCC is now engaging with the broad cross-section of market participants who oppose Rule 1001 to determine next steps to protect market participants’ choice for where to report their swaps transactions.