Dealers opt to break reporting rules in privacy clash

New swap reporting rules allow regulators to track who is doing what – in theory. But some jurisdictions have laws that prevent the disclosure of counterparty identities. Caught in the middle, some dealers are choosing to adhere to privacy laws while breaching regulations. By Fiona Maxwell

If dealers in Europe and the US are to comply with derivatives reporting rules, they need to reveal the identity of their counterparty in each new trade – a requirement that, in some jurisdictions, breaches national laws preventing this information being shared with foreign authorities. While regulators and politicians search for a solution, dealers have an unappetising choice. So, what are they doing?

"We've been masking identities in any jurisdiction we deem as problematic," says a regulatory