MFA Submits Comments to CFTC on ICE Clear Europe Portfolio Margining Petition

MFA submitted a comment letter to the CFTC in response to its request for public comments on the portfolio margining petition submitted by ICE Clear Europe.  In the letter, MFA urged the CFTC to grant the petition as soon as possible, because of the significant benefits to customers in the form of capital efficiencies and clearing access that result from portfolio margining and netting of offsetting positions in single-name credit default swaps (“Security-Based CDS”) and broad-based indices (“Index CDS”).  MFA also supported ICE Clear Europe’s petition request to hold customer positions in Security-Based CDS and Index CDS, and related margin assets, in single customer omnibus accounts subject to Section 4d(f) of the Commodity Exchange Act, and to calculate margin for such accounts on a portfolio basis pursuant to ICE Clear Europe’s portfolio margining methodology.