CME Group Inc.'s decision to allow users of its interest-rate swap future contracts to avoid tougher oversight is drawing scrutiny from its government regulator, Bloomberg News reported yesterday. The contracts, which begin as futures and are converted to swaps guaranteed by CME's clearinghouse if held until delivery, will not be included in totals determining whether users face higher collateral, capital and trading requirements, according to CME. Under Commodity Futures Trading Commission rules, traders who buy or sell more than $8 billion of swaps in a year will face the tougher standards by being designated a dealer or so-called major-swaps participant.
