Regulators Approve a New Window Into 'Swaps' (Wall Street Journal)

It seemed like the CFTC’s meeting yesterday (Dec 12th) would be awsj big one; we’d find out the size of a block trade and in doing so get some insight into how truly electronic the swaps market would become.  Unfortunately, the can has been kicked down the road again.  Instead we have a seemingly temporary 30 minute reporting delay for all trades (until block trades are defined) and confirmation that all trades must be reported (a no brainer).

My comments in the Wall Street Journal could have used a little qualifying, as they sound a bit generic out of context (of course market data exists today), but if you’ve read any of my other research you know where I’m coming from. Â Here’s to hoping this market actually can get moving in 2012.

Swaps market analyst Kevin McPartland, a principal with research-firm TABB Group, said the new rules will greatly increase amount of available data on each trade. “We’re going from a world where there was almost no market data to a world where it will be regulated into existence,” Mr. McPartland said, adding that now “everyone will have streaming data on these markets.” He estimates that the Dodd-Frank derivatives regulations will cost the industry $1.8 billion in total but hasn’t separated out the cost for the data rules.

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