Some swap dealers can now skip paperwork for certain trades

The US derivatives regulator is proposing to loosen some rules for how swap dealers handle paperwork. This means fewer compliance steps for trades that are immediately cleared or handled by a prime broker.

For years, financial firms have complained about the compliance burden for certain types of derivatives trades, even when those trades are considered low-risk. This change means some of those firms will no longer need to follow certain business conduct and documentation rules for specific transactions. It could make it faster and cheaper to execute these particular swaps.