External Meetings: Meeting with Morgan Stanley

The external attendees expressed general concerns about the proposed Business Conduct Standards rules and addressed the following issues: ~1. The proposed Business Conduct Standards rules under the Commission’s discretionary rulemaking authority should be self-regulatory organization rules rather than Commission rules.~2. The proposed Business Conduct Standards rules may create liability for a swap dealer under a private right of action.~3. The proposed trading ahead rule should be limited to executable orders.~4. A swap dealer should only be subject to the proposed rule regarding “swap dealer that acts as an advisor to a Special Entity” if the swap dealer and Special Entity agree that the swap dealer is its advisor.   ~5. Adoption and implementation of the proposed execution standards should be delayed to allow time for swap execution facilities to develop.~6. Comments on Swap Trading Relationship Documentation Requirements: Agreement on swap valuation methodologies is impractical as counterparties may have legitimately different views on the value of a swap.  Focus should instead be on dispute resolution and ISDA has been working with the industry to develop a uniform dispute resolution methodology.~7. Comments on Confirmation, Portfolio Reconciliation, and Portfolio Compression Requirements: One business day for swap valuation dispute resolution is not workable.  ISDA has been working with the industry to develop a uniform dispute resolution methodology.