The CFTC has set its sights on swaps in a vote today, toward implementation of the Dodd-Frank Act.  The rule at hand would require banks with more than $10 million in assets to trade through a central clearinghouse, according to a person familiar with the rule.  That decision will be accompanied by a separate ruling on the precise definition of swaps, prompting a series of other rules affecting trillions of dollars of financial contracts. The voting at the CFTC "starts the scramble to the finish line," said Joel Telpner, a lawyer at Jones Day who specializes in derivatives.  Under the clearinghouse rule, banks with more than $10 billion would have to post extra cash to back their swaps deals, a requirement for all clearinghouse clients. Industry Response. The proposal has been met with criticism that the requirement would tie up cash they otherwise could use for retail or business loans.  It's not surprising that the banks have pushed for a wider set of exemptions.  On the other hand, backers recognize the cash deposit would provide a safety net for firms in the event they incurred  big losses on their swaps deals.  The cash deposit would also lessen the inherent risk exposure of swap counterparties, a relevant factor given the fact that most banks historically have not had to post collateral on their so-called OTC market deals. For further details, go to [WSJ, 7/10/12].