MFA Letter to Regulators Regarding Protection and Safeguarding of Customers’ Initial Margin

MFA submitted a letter to the Federal Reserve Bank of New York, SEC and CFTC raising concerns regarding the protection and safeguarding of customers’ initial margin that they deposit with dealer financial institutions in connection with OTC derivatives trading. MFA’s submission followed meetings MFA held with financial regulators on the infrastructure issues related to the CDS market and proposals to establish one or more central counterparties for such market.