Data vendor Bloomberg L.P. filed a lawsuit on Tuesday against the top U.S. derivatives regulator to fight a new rule that would make the trading of swaps more expensive and hurt its business. Bloomberg is one of a dozen or so providers that plan to launch platforms on which to trade swaps, as regulators globally crack down on the $650 trillion market to prevent a repeat of the 2008 financial crisis. Under a rule by the Commodity Futures Trading Commission (CFTC), buyers and sellers of swaps must set aside enough money – so-called margin – to cope with the impact of a deal falling apart, assuming it takes five days to unwind the position. But for futures, a rival type of product, the assumption is that deals can be unwound in one day, making them far cheaper to use. More on Reuters here.
