Comment Letter on Proposed Rulemaking for Requirements for Processing, Clearing, and Transfer of Customer Positions

April 11, 2011

From: MFA, Stuart Kaswell

To:

David Stawick, CFTC
Gary Gensler, Michael Dunn, Bart Chilton, Jill Sommers, Scott O'Malia, (all) CTFC.
Mary Schapiro, Kathleen Casey, Elisse Walter, Luis Aguilar, Troy Paredes, (all SEC)

MFA submitted a comment letter to the CFTC on its proposed rules on Requirements for Processing, Clearing, and Transfer of Customer Positions. In our letter, MFA supported real-time acceptance of trades for clearing and requested that the CFTC impose the same real-time acceptance timeframe for all trades. We also recommended that the CFTC modify the proposed rule to prohibit derivatives clearing organizations from adopting rules or engaging in conduct that is prejudicial to indirect clearing members with respect to eligibility or the timing of clearing or processing of trades. MFA emphatically supported, and enumerated the benefits of, facilitating portability of a customers portfolio and associated margin and we provided specific recommendations for enhancing portability. We also raised multiple concerns about trilateral guaranteed clearing arrangements and requiring them or similar documentation as a precondition to access to clearing. In response, we made a number of recommendations, including that the CFTC prohibit executing parties and clearing members from imposing execution limits or other forms of restrictions that are anti-competitive or that otherwise limit a customers ability to achieve best execution in the relevant market.

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