MFA Files Position Paper on Eliminating Post-Trade Name Disclosure in Swaps Market

MFA filed a position paper with the CFTC. The paper is titled "Why Eliminating Post-Trade Name Disclosure Will Improve the Swaps Market" and argues that revealing the names of counterparties to anonymously executed, cleared swap execution facility ("SEF") trades "undermines Dodd-Frank Act goals."

According to MFA, there is "no commercial, operational, credit, or legal justification" for the legacy practice of post-trade name disclosure to continue on SEFs that offer the anonymous execution of cleared swaps.

MFA stated that eliminating post-trade name disclosure will "increase the diversity, breadth, and depth of liquidity on SEFs and thereby reduce the potential for market volatility and disruptions." According to MFA, other financial markets that have undergone a similar transition, such as the U.S. Treasuries market, have realized these benefits.

MFA urged the CFTC to "take prompt regulatory action" to ban post-trade name disclosure. According to MFA, as long as post-trade name disclosure is allowed, otherwise eligible buy-side participants "will continue to be deterred from participating" in swaps markets.

MFA filed the position paper in connection with the CFTC Market Risk Advisory Committee meeting that is scheduled for April 2, 2015, in which panelists will discuss the practice of post-trade name disclosure among other SEF implementation topics.

See: "Why Eliminating Post-Trade Name Disclosure Will Improve the Swaps Market." Related news: CFTC Commissioner Giancarlo Releases Swaps Trading Rules White Paper (with Patel Comment and Delta Strategy Group Summary) (January 29, 2015).