SIFMA's Asset Management Group (SIFMA AMG) today issued the following statement from Matt Nevins, managing director and associate general counsel, SIFMA AMG, after the Commodity Futures Trading Commission (CFTC) issued no-action relief for asset managers from oral recordkeeping requirements in connection with swaps transactions (Rule 1.35(a), "The Rule"). The relief applies to asset managers who are members of swap execution facilities (SEFs) or members of designated contract markets (DCMs):
"We strongly commend the CFTC for taking today’s action to extend the relief previously provided to registered commodity trading advisors (CTAs) that are members of SEFs or DCMs. We remain of the belief that the Rule should not be applicable to asset managers that access SEFs to execute swaps. Our members will use the additional time to continue preparing for compliance with the oral recording portions of the rule. During this time, we hope that the CFTC will continue to assess our request to exempt asset managers from the Rule completely, including providing additional relief from the written recordkeeping requirements. We believe that doing so will encourage asset managers and other end users to execute swaps directly on SEFs, consistent with the intended policy goals of open access and transparency. We stand ready to assist the CFTC with their ongoing assessment of the rule."
SIFMA AMG's April 17 letter requesting relief is available here: http://www.sifma.org/issues/item.aspx?id=8589948677, and its December 10, 2013 letter requesting relief is available here: http://www.sifma.org/issues/item.aspx?id=8589946605.
