June 15, 2011 - 8:08am

Rules scheduled to take effect in mid-July for the $601 trillion swaps market would be delayed until as late as the end of the year under a proposal by the U.S. Commodity Futures Trading Commission.

The agency’s commissioners voted 5-0 to propose “temporary relief” from some requirements set to be in place on July 16, a year from the enactment of the Dodd-Frank Act.

The CFTC acted amidst concerns both internally and from the private sector that the rules, which will bring swap transactions under regulatory oversight, were not defined well enough to provide certainty to market participants about whether and how they will be affected.

Nearly one year after Congress passed financial changes to rein in the banking sector, more than two dozen of the legislation’s rules are behind schedule.

Commentators have suggested that the banks have worked out that attacking Dodd-Frank in its implementation phase is proving much more fruitful than their attempts to attack it when the legislation was actually being put together.