The CFTC on Thursday finalized five rules that will increase reporting requirements for swaps dealers and major participants, and to enhance the agency’s ability to bring and prosecute manipulation cases.
The rules were required by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.
The swaps rules require clearinghouses, members and dealers to make daily reports of large swaps positions in 46 commodities. Large traders would have 60 days after publication of the rules to comply, but swaps dealers have more time as the agency completes related swaps rules changes.
Last month, the Commodity Futures Trading Commission announced a delay on some swaps rules until the end of the year. In the next few months, the commission will meet to finalize rules for mandatory swaps clearing and registration of swaps data repositories.
The anti-manipulation rules, which go into effect 30 days after federal notice, lower the standard of proof to a showing that a person acted recklessly, and allow for prosecution of fraud-based manipulation.
“That will be critical ammo in the commission’s enforcement arsenal,” said CFTC Commissioner Bart Chilton at Thursday’s open meeting to vote on the rules.