The Commodity Futures Trading Commission has prevailed against a lawsuit waged by industry trade groups against cross-border swaps rules and related guidance. It will, however, have to go back and conduct a more in-depth cost-benefit analysis for several of those rules.
Last year, the Securities Industry and Financial Markets Association, the International Swaps and Derivatives Association, and the Institute of International Bankers challenged the cross-border rules and how the CFTC planned to apply and enforce them. Their challenge included various grievances, including the burden the rules presented, the use of guidance in some matters rather than rulemaking with a full public comment process, compliance with the Administrative Procedures Act, and what they viewed as an inadequate cost-benefit analysis.
