CFTC Sued by Depository Trust Clearing Corporation

The Depository Trust Clearing Corporation ("DTCC") filed suit against the CFTC for its approval of CME Rule 1001, and its implicit approval of a similar rule by ICE, that allows those clearing houses to report data on cleared swaps to affiliated swap data repositories. DTCC argues that the CME-ICE rules are anticompetitive tying arrangements that violate Parts 45 and 49 of the CFTC rules. "The commission failed to properly consider the anticompetitive effects of (the rules), and did not comply with the legally required administrative or cost-benefit analysis procedures," DTCC said in a statement.

In approving CME's rule, the CFTC previously addressed DTCC's argument, holding that Parts 45 and 49 specifically contemplated that DCOs may report swaps to an SDR of their choosing and that, while § 49.27(a)(2) prohibits the tying of SDR mandated services with SDR ancillary services, the matter here involves neither an SDR-mandated service nor an SDR ancillary service, but the provision of clearing services. The CFTC further stated that "in adopting Part 45, the Commission decided to avoid injecting itself into this market decision."

See: Complaint - DTCC Data Repository (U.S.) LLC et al. v. CFTC.Related News Item: Battle Over Swaps Trade Reporting (with Lofchie Comment).