Comment Letter to SEC and CFTC Regarding Definition of ‘Eligible Contract Participant’

January 10, 2012

From: MFA, Stuart Kaswell, GFXD


Gary Gensler, CFTC, Mary Schapiro, SEC
Jill E. Sommers, Bart Chilton, Scott O'Malia, Mark Wetjen, David Stawick, Daniel Berkovitz, Richard Shilts, Ananda Radhakrishnan (all) CFTC
Elisse Walter, Luis Aguilar, Troy Paredes, Daniel Gallagher, Elizabeth Murphy, Robert Cook, David Blass (all) SEC

MFA and SIFMA submitted a letter and attachment to the CFTC and the SEC on their proposed definition of “eligible contract participant” (ECP).  The Association is concerned that the proposed ECP definition will cause substantial disruptions to our markets that harm not only our members but investors generally.  The Association respectfully urged the Commissions to adopt appropriate changes to the ECP definition to allow private funds and other commodity pools to qualify as ECPs, provided that the funds and pools were not formed for the purpose of evading the ECP definition.  We believe that private funds and commodity pools should be able to rely on Section 1a(18)(A)(v)(I) of the Commodity Exchange Act without the need to “look through” to determine whether every direct or indirect investor/participant is an ECP.