The CFTC will allow more time for swaps dealers to comply with collateral requirements scheduled to take effect March 1, aiming to ease concerns that global markets could face disruptions without a transition period. In a no-action letter, the CFTC said from March 1 through Sept. 1, it won't recommend enforcement action against dealers for failing to comply with the new rules. The action doesn't delay the effective date, but only allows market participants a grace period. Although thousands of companies have been working to modify legal agreements to comply with the rules, they're unlikely to finish by the March 1 deadline, according to groups including ISDA, GFMA and ABA.
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