CFTC Votes 4-to-1 for Rules Aimed at Wall Street Swap Abuse
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U.S. regulators moved to soften Dodd-Frank Act rules designed to protect less-sophisticated customers in swap trades after banks, pension funds and municipalities said the original plan could damage the market.
The Commodity Futures Trading Commission, meeting in Washington today, voted 4-1 for revised regulations that ease responsibilities initially proposed for Wall Street banks. The changes loosen requirements that trades be suitable for clients and limit banks’ obligation to act in the best interest of public agencies, so long as they don’t recommend specific swaps.