CFTC relief caps day of swaps margin mayhem

Banks unable to face up to 50% of counterparties due to custodian bottlenecks

Trading confusion
State of confusion: large dealers were unable to trade with their full range of counterparties

US regulators have shelved a key requirement of the swaps market's new margining regime less than a day into the mandate. It was the culmination of an at-times chaotic day of trading, in which some banks had access to only half of their dealer counterparties – the result of a documentation and operational backlog that started to clear as the day wore on.

As US markets closed yesterday, the Commodity Futures Trading Commission (CFTC) announced it would temporarily lift its requirement that dealer

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