MFA filed comments with the European Commission (“Commission”) in response to its consultation paper on FX financial instruments. The consultation paper requested comment on how to define a FX spot contract and how to delineate between spot contracts and FX financial instruments, which are subject to other legal frameworks, such as Markets in Financial Instruments Directive II and the European Market Infrastructure Regulation, among others. MFA urged international coordination with respect to regulation of the foreign exchange markets, and for the Commission to avoid regulatory conflicts or overlaps where possible. MFA recommended that the Commission, in interpreting an “FX spot transaction” consider an approach that would be comparable to the U.S. regulatory approach. Specifically, MFA recommended that the Commission adopt a “FX spot transaction” definition which considers a settlement period (such as T+2) and includes transactions which have a longer settlement period because of market custom or because the FX transaction is part of a foreign currency asset conversion transaction.