Comment Letter to SEC on Proposed Rules for Business Conduct Standards for Security-Based Swap Dealers and Major Security-Based Swap Participants

MFA submitted a comment letter to the SEC in response to proposed business conduct standards for security-based swap dealers and major secutiy-based swap participants. In our letter, MFA recommends that the SEC: (1) not subject major security-based swap participants to the same supervisory and compliance structure and counterparty disclosure requirements relating to material information, clearing rights and daily marks for uncleared security-based swaps to which security-based swap dealers will be subject; (2) clarify that the SEC is not imposing any new fiduciary or supervisory duties on market participants; (3) allow sophisticated counterparties to opt out of receiving additional disclosures proposed by the SEC that such counterparties may not seek or need; and (4) confirm that the definition of special entity does not include investment vehicles in which endowments, employee benefit plans or government entities invest.