RiskTech Forum

Energy Firms Make Last-Ditch Efforts To Escape Swaps Dealer Registration

Posted: 4 March 2013  |  Source: Fincad

While many firms involved in the trade of OTC derivatives have simply resigned themselves to registering with U.S. government agencies as swaps dealers, Energy Risk reports that many companies in the energy sector are pulling out all the stops in terms of avoiding being designated in such a way by financial regulators.

Last month, the U.S. Commodity Futures Trading Commission announced in a statement that several firms had started complying with derivatives regulations set forth by the Dodd-Frank Act, registering as swaps dealers and also reporting the transactions.

Data provided by Chicago-based industry organization the National Futures Association indicated that 77 separate firms had submitted applications to become registered as swaps dealers as of February 22, according to the news source.

"A lot of the futurization is happening, quite bluntly, in order for companies to avoid swap dealer registration," said Brenda Boultwood, vice-president of industry solutions at a California-based firm that develops governance, risk and compliance software, the media outlet reports.

CFTC Chairman Gary Gensler has championed the benefits of the new derivatives regulations requiring swaps registration, stating that they will provide government agencies with greater visibility into market activity and the positions held by firms.