MFA Submits Letter to CFTC Requesting Relief for Package Transactions
The Managed Funds Association ("MFA") submitted a letter to the CFTC Division of Market Oversight ("DMO") requesting time-limited no-action relief from the trade execution requirement for swaps executed as part of package transactions in the interest rate asset class. In the letter, MFA states that it is writing in response to the CFTC's announcement of the trade execution mandate for certain interest rates swaps in connection with Javelin SEF Made-Available-to-Trade ("MAT") determination. In particular, MFA had concerns with the position taken by the CFTC regarding package transactions.
MFA explained that market participants are trying to develop the infrastructure needed to process certain package transactions through the execution-to-clearing workflow; however, the infrastructure is not available and time is needed to address comprehensive solutions. MFA requested relief for the varying types of package transactions, which included:
- Same SEF Package Transactions;
- Swap plus Non-Swap Package Transactions; and
- all Other Swap Package Transactions.
See: MFA Letter Requesting Relief; Press Release.Related news:MFA Submits Suggestions to CFTC on MAT Submissions (with Lofchie Comment) (November 25, 2013); SIFMA and ISDA Criticize SEFs' Made-Available-to-Trade Submissions (with Lofchie Comment) (November 21, 2013); CFTC Extends Comment Period on Certification from Javelin SEF to Implement Available-to-Trade Determinations (with Lofchie Comment) (November 1, 2013) CFTC Seeks Public Comment on Certification from TW SEF LLC to Implement Available-to-Trade Determinations for CDS (with Lofchie Comment) (October 29, 2013); trueEX Certifies Available-to-Trade Determinations for Certain Interest Rate Swaps (with Lofchie Comment) (October 22, 2013); SEF Seeks Determination of Mandatory Exchange Trading of Swaps (with Lofchie Comment) (October 18, 2013).