Tax questions cloud prospects for CME swap future and Mac swaps

The US taxman is holding back growth in CME Group’s new swap futures contract, according to some market participants. This is a consequence of the product’s design, in which users can end up taking delivery of an over-the-counter swap at an off-market rate when the contract reaches expiry. The fear is that US tax rules may treat this as a loan, which prompted some users to roll their positions at the product’s first two maturity dates in March and June, rather than allowing them to expire. The