By Electronic MailSeptember 20, 2012Commodity Futures Trading CommissionThree Lafayette Center1155 21
Street, N.W.Washington, D.C. 20219Attention: David A. Stawick, Secretary
Regarding: Clearing Exemption for Swaps Between Certain Affiliated Entities
Dear Mr. Stawick:The Financial Services Roundtable (the
respectfully submits thesecomments in response to the proposed Clearing Exemption for Swaps Between Certain AffiliatedEntities (
the “Proposed Inter
released by the Commodity Futures Trading
Commission (the “Commission”
We strongly support the Commission’s efforts to exemptswaps between affiliated entities from the Commission’s clearing requirements. As we have
noted in previous comment letters,
swaps between affiliated members of corporate groupsprovide significant advantages, including streamlining documentation and centralizing risk management and oversight of swaps activities. In general, we believe inter-affiliate swapsshould be exempt from clearing and trade execution requirements, and should only be subject tomargin requirements to the extent other applicable law, such as Sections 23A and 23B of theFederal Reserve Act, imposes restrictions on affiliate transactions. In addition, we agree that theend-user exemption
should be available for inter-affiliate swaps when either party to such swapwould independently qualify for such exemption.Although we generally support the Proposed Inter-Affiliate Exemption, we believecertain conditions to the use of the exemption should be clarified or modified to increase itsusefulness for affiliated entities. We discuss our recommended changes below.
The Financial Services Roundtable represents 100 of the largest integrated financial services companies providingbanking, insurance, and investment products and services to the American consumer. Member companiesparticipate through the Chief Executive Officer and other senior executives nominated by the CEO. Roundtable
member companies provide fuel for America’s economic engine, accounting
directly for $92.7 trillion in managedassets, $1.2 trillion in revenue, and 2.3 million jobs.
77 Fed. Reg. 50425 (August 21, 2012).
Letter from The Financial Services Roundtable to Elizabeth M. Murphy, Secretary of the Securities andExchange Commission and David A. Stawick, Secretary of the Commodity Futures Trading Commission,
Key Definitions in Title VII of the Dodd-Frank Act
, September 20, 2010; Letter from the ABA Securities Association,The Financial Services Roundtable et. al. to David A. Stawick, Secretary of the Commodity Futures TradingCommission,
Treatment of Inter-Affiliate Transactions under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act
, September 8, 2011.
End-User Exception to the Clearing Requirement for Swaps, 77 Fed. Reg. 42560 (July 19, 2012).