The discussion covered the following topics, which are also addressed in a comment letter from Ludolf Röell of Branch Banking & Trust Company (BB&T) dated February 3, 2011 (Comment No. 27500).

On February 4, 2011, Commission staff met with ABC and CIEBA to discuss issues relating to the real-time reporting notice of proposed rulemaking.
 
(i) Expressed concern about “front-running” in all swap transactions, but particularly with regard to block (large notional) trades.
(ii) Suggested that price be reported immediately for all trades, but size be reported with a delay and that all trades should be reported using ranges to express notional or principal amount, such as: 0-100, 101-200, 200+ (in notional amounts).

On February 7, 2010 the Commission staff met with EEI to discuss the real-time reporting proposed rule.  EEI’s general concerns related to anonymity and liquidity issues, specifically the value disclosing information relating to end-user to end-user power swaps compared to the harm that disclosing such information would have to end-users and to the customer.  EEI further suggested that the rule, as proposed, sacrifices price discovery in order to increase transparency.
 

Participants discussed the proposed rules on financial resources, information management, and risk management requirements for Derivatives Clearing Organizations.

Participants discussed the proposed requirements to mitigate conflicts of interest in Derivatives Clearing Organizations (“DCOs”), Designated Contracts Markets, and Swap Execution Facilities. The discussion focused on the effects the proposed requirements may have on the Options Clearing Corporation, the DCO clearing for ELX.

The discussion centered on certain points raised by Bank of Oklahoma (BOK) in its comment letter (Comment No. 27651, dated Jan. 31, 2011).

Discussion of comment letter submitted to the SEC on February 4, 2011.

On February 09, 2011, Mark Young of Skadden called and spoke to Phyllis Cela and Ted Kneller of the CFTC. 


Mr. Young identified two issues that he planned to address in meetings scheduled with CFTC staff on February 10: 1) CFTC’s proposed rules and possible intersections with the Department of Labor’s proposed rules on the term “fiduciary”; and 2) the application of the Special Entity provisions of the Dodd-Frank Act and CFTC’s proposed rules to ERISA pension plans.

On February 14, 2011, CFTC staff met with representatives of ISDA, UBS AG and J.P. Morgan to discuss dispute resolution and swap portfolio reconciliation issues.  The attachment was provided at the meeting.  CFTC staff invited the representatives to provide additional written comments.

Discussion of the UPI concept and upcoming Proof of Concept (POC).