Dodd-Frank Swap Data Fails To Catch JPMorgan Whale

Beached Whale

Dodd-Frank Act derivatives rules are failing to give regulators a full picture of the swaps market and wouldn’t help them detect a loss similar to JPMorgan's London Whale trades, according to Commodity Futures Trading Commission member Scott O’Malia.

Bloomberg reports that swap-trade data the agency has been receiving since the end of last year from repositories including the Depository Trust and Clearing Corp. is inadequate to identify large positions and have overwhelmed government computer systems, O’Malia said in a speech prepared for a Securities Industry and Financial Markets Association conference in Phoenix.

The data 'is not usable in its current form', said O’Malia, 45, one of the agency’s five commissioners. 'The problem is so bad that staff have indicated that they currently cannot find the London Whale in the current data files'.

Hit the link below to access the complete Bloomberg article:

Dodd-Frank Swap Data Fails to Catch JPMorgan Whale

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