Comment Letter to SEC Responding to Proposed Rule Related to Security-Based Swap Clearing Agencies, Security-Based Swap Execution Facilities, and National Securities Exchanges

MFA submitted a comment letter in response to the Securities and Exchange Commissions (SEC) proposed rule on Ownership Limitations and Governance Requirements for Security-Based Swap Clearing Agencies, Security-Based Swap Execution Facilities, and National Securities Exchanges with Respect to Security-Based Swaps under Regulation MC. In our letter, MFA recommended, among other things, that the SEC: (i) coordinate and reconcile Proposed Regulation MC with the CFTCs proposed rule to ensure, to the extent possible, consistency of treatment for clearing and execution of swaps and security-based swaps; (ii) affirmatively mandate that Boards, risk committees and regulatory oversight committees, as applicable, for security-based swap clearing agencies (SBSCAs), security-based swap execution facilities (SB SEFs) and national securities exchanges (SBS exchanges) include non-dealer, customer representatives; and (iii) impose requirements that affirmatively limit the representation of each group on SBSCA, SB SEF and SBS exchange Boards and committees such that no group would constitute a controlling majority.

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