CFTC staff had a call with representatives of CME and Skadden, Arps, Slate, Meagher & Flom LLP to discuss proposed CFTC regulations related to the protection of cleared swaps customer contracts and collateral.

Participants discussed position aggregation and position limits

Participants discussed the proposed requirements to mitigate conflicts of interest in Derivatives Clearing Organizations, Designated Contracts Markets, and Swap Execution Facilities.  In particular, participants discussed a comment letter received from Better Markets on November 17, 2010.   Staff invited Better Markets to submit an additional comment letter further detailing the indirect means of influence that Better Markets has observed in the derivatives markets.

Meeting Paricipants discussed the applicability of Dodd Frank provisions to Agricultural Coops.

Meeting participants discussed the definition of bona fide hedging.

The meeting discussed issues raised in prior meetings with NRU CFC and their written comment submissions, relating to whether the end user exception from clearing is and should be available to NRU CFC when it enters into interest rate swaps related to its activity of providing financing to rural electric cooperatives.

Meeting participants discussed the applicability of Dodd Frank provision to Agricultural Coops.

In a follow up to the meeting on 7/21/11, participants further discussed the proposed requirements to mitigate conflicts of interest in Derivatives Clearing Organizations, Designated Contracts Markets, and Swap Execution Facilities.  Bloomberg plans to submit a comment letter detailing the issues discussed.

Federal Reserve Board

Meeting participants discussed the issue of Renewable Energy Credits and the applicability of the definition of swap.