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MFA Statement on the SEC’s Proposed Treasury Market Clearing Rule

Washington, DC – Managed Funds Association President and CEO Bryan Corbett today issued the following statement in response to the SEC’s proposed rule on U.S. Treasury Market clearing:

“We’re encouraged that the SEC is taking steps to modernize Treasury market structure and support enhanced client clearing options, including by recommending important enhancements relating to clearing agency risk management, collateral segregation, and non-discriminatory access. However, we are concerned about the approach of arbitrarily singling out hedge funds for mandatory central clearing, which could impact market competition and lead to increased costs borne by institutional investors, such as pensions, foundations, and endowments, and their beneficiaries. We look forward to reviewing this proposal in detail and providing feedback to the Commission.”

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About the Global Alternative Investment Industry

The global hedge fund and alternative asset management industry, including hedge funds, credit, managed futures, and hybrid funds that invest in private companies, has assets under management of $4.3 trillion (Q3 2021). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets.

About the Managed Funds Association

Managed Funds Association (MFA) represents the global alternative investment industry and its investors by advocating for regulatory, tax, and other public policies that foster efficient, transparent, and fair capital markets. MFA’s more than 150 member firms collectively manage nearly $2.6 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time. MFA has a global presence and is active in Washington, London, Brussels, and Asia. www.managedfunds.org.