Proposed DCO Registration Exemption; Extension Request

Summary

SIFMA sent comments to the CFTC on its proposed rule regarding exemptions from derivatives clearing organization registration. SIFMA appreciates the continuing efforts of the Commission and its staff to review rules, regulations and practices, including those covered by the Proposal, to identify areas that can be simplified and made less burdensome and costly, as part of the Commission’s Project KISS, and other similar initiatives.

SIFMA understands this proposal stems from the Commission’s Project KISS initiative, and generally seeks to codify the existing policies and procedures the Commission is currently following with respect to granting exemptions for non-U.S. clearinghouses from DCO registration. SIFMA and other market participants have engaged in significant dialogue with regulators to consider possible approaches to address the complex issues relating to access to non-U.S. clearinghouses.

Excerpt

Mr. Christopher Kirkpatrick

Secretary

U.S. Commodity Futures Trading Commission

1155 21st Street, NW

Washington, DC 20581

Re: Notice of Proposed Rulemaking on the Exemption from Derivatives Clearing Organization Registration (RIN 3038-AE65)

Dear Mr. Kirkpatrick:

The Securities Industry and Financial Markets Association (“SIFMA”)1 greatly appreciates the opportunity to provide the Commodity Futures Trading Commission (“CFTC” or “the Commission”) with comments on its proposed rule regarding exemptions from derivatives clearing organization (“DCO”) registration (the “Proposal”).2 We further appreciate the continuing efforts of the Commission and its staff to review rules, regulations and practices, including those covered by the Proposal, to identify areas that can be simplified and made less burdensome and costly, as part of the Commission’s Project KISS, and other similar initiatives.3 We understand this proposal stems from the Commission’s Project KISS initiative, and generally seeks to codify the existing policies and procedures the Commission is currently following with respect to granting exemptions for non-U.S. clearinghouses from DCO registration. SIFMA and other market participants have engaged in significant dialogue with regulators to consider possible approaches to address the complex issues relating to access to non-U.S. clearinghouses. In December 2017, SIFMA published with the Futures Industry Association a white paper on non-U.S. trading platforms and clearinghouses that addresses these complex issues.4

Since the Proposal was published for comment, however, CFTC Chairman Giancarlo has been speaking about and subsequently released a comprehensive white paper on cross-border regulation.5 While we are still reviewing the white paper, we believe some of its recommendations may impact subjects also addressed in the pending Proposal. Therefore, we respectfully request an extension of 60 days to the Proposal’s comment period so that we may review the Chairman’s white paper in more detail and consider the potential impact on the Proposal and member views.6

We appreciate your consideration of this extension request on this important topic. With the comment deadline approaching, we kindly ask that you respond to our request as soon as possible. Please do not hesitate to contact the undersigned at 212-313-1280 or kbrandon@sifma.org if you have any questions.

Regards,

Kyle Brandon

Managing Director, Head of Derivatives and

Director of Research

SIFMA

kbrandon@sifma.org