Categories: OLD Media Moves

Bloomberg loses suit against derivatives regulator

The top U.S. derivatives regulator won a legal victory over Bloomberg LP late on Friday when a court dismissed a case the data vendor had filed that claimed a new rule on trading swaps would hurt its business.

Douwe Miedema of Reuters reports, “Bloomberg is one of a dozen or so providers launching a platform on which to trade swaps, as regulators across the world crack down on the $630 trillion market to prevent a repeat of the 2008 financial crisis.

“But that effort would be hurt by a new rule from the Commodity Futures Trading Commission which will force buyers and sellers of swaps to set aside enough money – or margin – to cope with the impact of a deal falling apart, Bloomberg had argued.

“That is because the margin on a swap should be enough to cover five days of unwinding the position, but only one day for futures, a similar type of product traded on rival exchanges, making them cheaper to use.

“The court said, however, that Bloomberg had provided no evidence that this requirement would hurt its business.”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

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