The meeting took place at the offices of the CFTC in Washington, D.C.  Josh Kans (SEC) and Richard Grant (SEC) joined by telephone conference. The external attendees discussed with CFTC and SEC staff (1) whether CDPCs are likely to be covered by the definition of swap dealer or security based swap dealer and the extent of their run-off activities, (2) whether CDPCs are likely to be covered by the definition of major swap participant or major security based swap participant, (3) the CDPC business model, capital structure, leverage and relevant operating guidelines,

The meeting took place at the offices of the CFTC in Washington, D.C. Tim VandenBerg (WA), Richard England (WA), Jonathan Liew (Conatus) and Peter Curley (SEC) joined by telephone conference. CFTC and SEC staff answered questions from the external attendees regarding the status of various rulemakings, including those related to clearing and infrastructure, standardization, margin and capital for uncleared trades, phasing and implementation, cross-margining of futures and swaps and rules not yet proposed.

The meeting took place at the offices of the CFTC in Washington, D.C.  Peter Curley (SEC) joined by telephone conference.  The participants discussed issues raised in Prudential’s comment letter of May 2, 2011 and prior comment letters relating to trades among affiliates and the impact of internal or “conduit” trades on the swap dealer analysis.

The meeting took place at the offices of the CFTC in Washington D.C.  Mark Cvrkel (Susquehanna) joined by telephone conference.  The participants discussed the application of the definition of “hedging or mitigating commercial risk”  to various fact patterns, including those outlined in Susquehanna’s comment letter of May 9, 2011.

Participants discussed the eligible contract participant definition provision applicable to governmental entities.  The discussion focused on a reference to section 2(c)(2)(B)(ii) of the Commodity Exchange Act that has been renumbered and no longer appears to be correct.

During a break in the CFTC-SEC staff roundtable on implementation of the Dodd-Frank requirements, the participants discussed open access regarding the clearing requirement.

Participants discussed extraterritorial application of Dodd-Frank rules, with particular focus on the margin rules proposed by the prudential regulators as they apply to US entities doing business in foreign jurisdictions.

Participants discussed extraterritorial application of Dodd-Frank to US entities operating in foreign jurisdictions.  Representatives from Goldman Sachs advocated that US entities operating in foreign jurisdictions should be treated no differently from foreign entities with respect to application of Dodd-Frank requirements; otherwise foreign entities would have a significant unfair competitive advantage over US businesses operating in foreign jurisdictions.

The external attendees discussed their views about the proposed External Business Conduct Standards rules as expressed in the SIFMA/ISDA February 17 comment letter and made some drafting suggestions.

Thomson Reuters runs an international global platform so they will be closely watching our rules regarding SEFs.  They are an MTF in the EU and would like to register as a SEF in the US.  They would like to know how the FBOT structure will work with the SEF structure.  Also, how will recognition of foreign SEFs work?