MFA submitted the attached letter to staff from the Division of Trading and Markets of the SEC providing detail on the legal segregation with operational commingling ("LSOC") model that the CFTC adopted as the baseline segregation model for cleared swaps. This letter is a follow-up to MFA's February 22, 2013, letter on the SEC's proposed capital, margin and segregation rules, in which the MFA recommended that the SEC adopt LSOC as the default segregation model for cleared security-based swaps. The letter touches upon the following: The general requirements of LSOC, The requirements for

Better Markets, Inc., on the one side, and a coalition involving the Edison Electric Institute, the Electric Power Supply Association and the CME Group, on the other, have filed opposing amicus briefs with the D.C. Court of Appeals in CFTC's appeal of a federal district court decision vacating its position limits rules issued under Dodd-Frank, ISDA v. CFTC, 887 F. Supp. 2d 259 (D.D.C. September 28, 2012). The Better Markets brief, which focuses on the cost-benefit requirement of CEA Section 15, argues that, although Section 15 requires the CFTC to "consider" the costs and benefits of proposed

The U.S. Court of Appeals affirmed a federal district court's ruling upholding amendments to CFTC Rule 4.5 requiring operators of mutual funds with commodity investments to register with the agency. The amendments had been challenged by a coalition comprised of two trade associations - the Investment Company Institute and the U.S. Chamber of Commerce - on the grounds that the CFTC failed to address its rationale for repealing rule amendments issued in 2003 that exempted mutual funds from CPO regulation, and for failing to conduct an adequate cost-benefit analysis of the new amendments. In

Commissioner Wetjen delivered a speech at the FIA and FOA International Derivatives Expo discussing the global scope of the CFTC and the implementation of Dodd-Frank overseas. The Commissioner's speech focused on the final implementation of Dodd-Frank in the coming weeks, especially the legislation's cross-border policy. In his rema rks, he outlined the main objectives which he believes the CFTC must reach through cross-border guidance and relief: The CFTC's Cross-Border Policy Must Protect the U.S. Taxpayer and Financial System: The Commissioner stated that the financial crisis taught global

According to correspondence between the CFTC, CIO and ICE Trade Vault, the CFTC has changed parts of the reporting fields for other commodity swaps, including Part 43 ("Real-Time Public Reporting") and Part 45 ("Swap Data Recordkeeping and Reporting Requirements"). Pantano Comment: These changes, should they go into effect, will require substantial IT systems and upgrades. Firms may wish to consider commenting to the CFTC that the changes should not be effective absent a formal rulemaking process, including publication of the proposed changes in the Federal Register and an opportunity to