Public Statements & Remarks

Statement of Commissioner Scott D. O’Malia, Measures to Promote Trading on Swap Execution Facilities and Support an Orderly Transition to Mandatory Trading

February 10, 2014

I am pleased that the Commission staff is providing relief until May 15, 2014 from mandatory trading of certain swaps executed as part of a package transaction.

This relief is proof that it is never too late to do the right thing and take a first step to fix our broken rules.  I previously raised serious concerns with the made available-to-trade (MAT) process.1 This process does not provide the Commission or staff with a means to consider issues such as package transactions before a MAT determination becomes effective.

I am pleased that the Commission staff will review all possible package transactions for technological, operational, and jurisdictional issues.  The roughly 90 day no-action relief will provide staff with the time to perform the necessary analysis.  I hope that the Commission staff will carefully consider market participants’ comments and suggestions from today’s Technology Advisory Committee meeting and the upcoming February 12 Staff Roundtable and will incorporate them into a final solution.

Finally, I support the Commission’s measure to revisit its reporting rules. The Commission’s interim final rule clarifying the swap reporting rules is important to protect the identities of counterparties trading on swap execution facilities, which should incentivize anonymous trading on these platforms.

1 Statement of Commissioner Scott D. O’Malia on Made Available-to-Trade Determination, available at

Last Updated: February 10, 2014