CFTC staff met with representatives of CIEBA to discuss proposed CFTC regulations related to the protection of cleared swaps customer contracts and collateral.

Participants discussed the swap definition, and in particular as it relates to Resource Adequacy Agreements, Tolling Agreements, and Environmental Commodities.

The attendees from the MSRB expressed the view that CFTC’s proposed pay-to-play rules for Swap Dealers should be harmonized with the MSRB’s pay-to-play rule.
 
NFA and MSRB attendees discussed potential registration and testing regimes for persons acting as an independent representative to a Special Entity under §4s(h) of the CEA.

Participants discussed position limits.

The meeting discussed issues raised in the banks’ comment letters and summarized in the attached agenda, regarding the exception in the definition of swap dealer for swaps entered into by insured depository institutions in connection with originating loans.  The banks explained how interest rate swaps provide flexibility for borrowers and risk management for lending banks.  They discussed how the accounting treatment of loans and swaps encourages banks to lend at a fixed rate and enter into fixed/floating swaps with the borrowers.  The banks listed the costs of swap dealer

Participants discussed customer clearing documentation and the timing of acceptance for clearing.

Participants discussed position limits and DCM Core Principal Number 9.

Participants discussed position limits.

CFTC staff had a call with representatives of Clifford Chance and General Motors Pension Plan to discuss proposed CFTC regulations related to the protection of cleared swaps customer contracts and collateral.