FIA Recommends Changes to CFTC Large Trader Proposal

FIA offered recommendations on CFTC-proposed amendments to large trader position requirements to address outstanding issues and "promote the transparency and quality of data."

The CFTC-proposed amendments would "modernize" how data is reported and expand the specific data to be submitted. The new data elements would provide more information as to the relevant transaction, including economic terms and certain matters such as changes in positions (see previous coverage). FIA recommended that the CFTC further:

• clarify the information required for certain data elements;
• collect data from one source, instead of requiring each reporting firm to submit the same data;
• confirm previous guidance as to revisions for "certain late claimed give-up or transfer activity";
• provide that the reporting requirements could not be amended without a formal rulemaking;
• adhere to a "transparent process" for making amendments;
• allow a reasonable time to implement amendments;
• extend the 365-day compliance period; and
• modify the proposal's cost-benefit analysis given that the current version "significantly underestimates" the costs that would be imposed on reporting firms.