Follow-up call to discuss comments on end-user exception.

On April 26, 2012, Commission staff participated in a phone conference with representatives from MarketAxess to discuss MarketAxess’ public comments regarding the proposed SEF rulemaking, and, in particular, MarketAxess’ comments regarding the expected costs of establishing and operating a SEF.

On April 30, 2012, Commission staff participated in a phone conference with representatives from Tradeweb to discuss the expected costs of establishing and operating a SEF.

On April 30, 2012, Commission staff participated in a phone conference with representatives from Bloomberg to discuss the expected costs of establishing and operating a SEF.  Bloomberg also discussed several other variables that could impact the costs associated with the Commission’s proposed SEF rulemaking, including harmonization between the SEC and the Commission.

Meeting with ICAP Energy to discuss Block Trade FNPRM


 


i. Recommend not using $25 million as block trade size as this number is much larger than most trades ICAP see’s today and they estimate being the broker on 2/3rds of power trades;


 


ii. Recommend that all power trades be treated like block trades because of low trading volumes;


 


iii. Recommend if blocks are required that the block trade size be expressed in MWh (Megawatt hour);


 

Meeting with Kinetix Trading Solutions to discuss Block Trade FNPRM


 


i. Recommend running the 67-percent notional amount calculation for every individual swap UPI not by swap category;


 


ii. Recommend that each strike price for an option have an individual UPI and therefore individual block trade size;


 

Participants discussed SEF execution methods, whether hybrid and/or voice brokerage operations are permissible under the Dodd-Frank Act, voice brokerage trading protocols (e.g., work-ups and right of first refusals), and SEF compliance issues. The CFTC staff were given a tour of ICAP's operations.

Participants discussed SEF execution methods, whether hybrid and/or voice brokerage operations are permissible under the Dodd-Frank Act, voice brokerage trading protocols (e.g., work-ups and right of first refusals), and SEF compliance issues. The CFTC staff were given a tour of GFI's operations.

Participants discussed SEF execution methods, whether hybrid and/or voice brokerage operations are permissible under the Dodd-Frank Act, voice brokerage trading protocols (e.g., work-ups and right of first refusals), and SEF compliance issues.

Participants discussed blind auction platforms and SEF registration, compliance timelines, and CCO provisions.