July 24, 2017

Mr. Christopher Kirkpatrick
Secretary
U.S. Commodity Futures Trading Commission
1155 21st Street, NW
Washington, DC 20581

Re: Commodity Futures Trading Commission Request for Public Input on Simplifying Rules (Project KISS); Extension of Certain Time-Limited No-Action Relief

Dear Mr. Kirkpatrick:

The Institute of International Banking, International Swaps and Derivatives Association, Inc. and Securities Industry and Financial Markets Association (together, the “Associations”)1 greatly appreciate the continuing efforts of the Commodity Futures Trading Commission (“CFTC” or “Commission”) and its staff to review rules, regulations and practices to identify those areas that can be simplified and made less burdensome and costly, including as part of the Commission’s Project KISS initiative.2

As the Commission has implemented many important and significant requirements under the Dodd Frank Act’s Title VII, such a review is timely as both the Commission and market participants have a better understanding of the resulting impacts of such efforts, helping to inform where changes are necessary and appropriate. It is our intention to provide helpful feedback to the Commission throughout this process, identifying areas for review and offering recommendations on how to apply them in ways that are simpler, less burdensome and less of a drag on the American economy. As the Commission is aware, due to the rapid pace of finalizing and implementing its Title VII regime, staff routinely issued guidance and no-action relief to address difficulties presented by new rules, including unachievable compliance dates and problematic requirements. Over the years, many of these welcome and necessary no-action letters have been extended (in some cases, several times) because the underlying practical or market issues that required the relief remain unresolved. This has resulted in a continuous cycle of market participants submitting extension requests, dialogue between Commission staff and industry participants regarding the necessity for such extensions and deliberation and resource allocation by the Commission – leading to Commission staff granting the requested extensions as a temporary, but necessary, fix. Ultimately, however, the underlying issues that many no-action letters intend to address require Commission action to resolve.

The Associations and their members appreciate the Commission and staff’s continued attention to these issues. Nevertheless, the cycle of requesting, discussing and granting extensions of relief results in unnecessary uncertainty and resource consumption for both market participants and staff. These negative impacts can be avoided by removing the time limitations on certain no-action relief where persisting issues remain difficult, if not impossible, to remedy under current circumstances. This approach was taken in the recent extension of two no-action letters 3, which the Associations support and hope to see expanded in other areas. Extending relief until the effective date of related changes in regulation will have a positive impact, providing certainty for markets and market participants alike. The CFTC will also benefit, as it will not need to dedicate resources to rolling relief, and will provide the Commission with further time to develop workable, permanent solutions to address the underlying issues necessitating relief in ways which meet its regulatory goals.

* * *
The Associations believe the extension of the relief provided by no-action letters referenced in the attachment would be a beneficial early step as part of the Commission’s Project KISS initiative. Please feel free to reach out to the undersigned should you have any questions.

Sincerely,

Sarah A. Miller
Chief Executive Officer
Institute of International Bankers

Steven Kennedy
Global Head of Public Policy
ISDA

Kyle Brandon
Managing Director, Head of Derivatives
SIFMA

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1 For a description of each Association, please see page 3 of this letter.

2 See Press Release, available at: http://www.cftc.gov/PressRoom/PressReleases/pr7555-17.

3 See CFTC Letter 17-27 (“The relief shall expire on the effective date of any changes in the regulations.”), available at: http://www.cftc.gov/idc/groups/public/@lrlettergeneral/documents/letter/17-27.pdf; also see CFTC Letter 17-17 (“The relief shall expire on the effective date of any changes in the regulation), available at: http://www.cftc.gov/idc/groups/public/@lrlettergeneral/documents/letter/17-17.pdf.