The meeting discussed the issues raised in the Commodity Markets Council's comment letter dated September 20, 2010, including the scope of the definition of "swap dealer," the use and purpose of yield swaps, and the interaction between the definitions of "swap dealer" and "futures commission merchant."

The meeting discussed the issues raised in the comment letter provided by the Coalition for Derivatives End-Users on September 20, 2010, including the definitions of "substantial position" and "substantial counterparty exposure" in the definition of "Major Swap Participant," the definition of hedging commercial risk, the de minimis exception to the definition of "Swap Dealer" and the definition of "eligible contract participant."

Staff met with MarkitSERV to discuss real-time public reporting of swaps.  See attached agenda.

The meeting discussed the issues raised in the comment letter provided by the Natural Gas Supply Association on September 28, 2010 – the definitions of “Swap Dealer” and “Major Swap Participant,” and in particular the de minimis exception to the swap dealer definition, how capital and margin requirements would apply to natural gas companies, how the mandatory clearing requirement would apply to long-term swaps, and how position limits would apply to hedged and speculative positions.

The consultation was held at the CFTC's Washington, D.C. office.


 


Participants discussed: (i) statutory provisions, objectives and guiding principles; (ii) platform characteristics; (iii) product requirements; and (iv) block transactions.

Telephone conference discussing access to NFA's database and ORS.  NFA provided additional information regarding its PQR.

The meeting focused on the definition of "swap" and the status of bond insurance and the definition of "swap dealer" and "major swap participant".

Discussed various issues related to clearing.  Topics included an overview of central clearing in OTC markets, clearing house risk standards, documentation, and governance and ownership.

The participants discussed end users’ hedging activities, OTC markets generally, and various other issues related to position limits on exempt commodity derivatives.