“We oppose provisions that are addressed solely to portfolio margining for securities futures. These provisions are too narrowly drawn, creating the potential for inappropriate competitive disparities across competing product markets,” said Lackritz in prepared testimony. “SIA would support legislation that the Securities and Exchange Commission and CFTC agree would facilitate adoption of SRO [self-regulating organization] rules implementing portfolio margining.”
He added that SIA is currently working with SROs and the SEC to expand the use of portfolio margining and that SIA had recently submitted such a proposal to the New York Stock Exchange.
Lackritz also noted that attempts to modify the Commodity Exchange Act (CEA) in an effort to address the so-called Zelener issue could result in unintended, adverse consequences for the U.S. derivatives markets.
“History has shown repeatedly that a lack of clarity under the Commodity Exchange Act can produce significant adverse consequences. As such, we urge Congress to proceed cautiously in considering provisions that go beyond Commodity Futures Trading Commission authorization,” he added.
SIA’s complete written testimony will be made available today on SIA’s website at http://www.sia.com/testimony/html/mlackritz09-08-05.html
