MFA Submits Comments to the 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 our letter, MFA urged the CFTC to approve the petition, because of the significant benefits to customers in the form of capital efficiencies and clearing access that result from portfolio margining and netting of positions in cleared energy-based swaps and contracts that constitute foreign futures and foreign options, and related margin assets, in a cleared swap account subject to Section 4d(f) of the Commodity Exchange Act, as amended. MFA also strongly urged the CFTC to grant the requested order by the November 8, 2012 effective date of the Part 22 regulations governing Section 4d(f) accounts, as customers expect to be clearing by then, whether on a voluntary or mandatory basis.