March 15, 2019

Mr. Christopher Kirkpatrick
Secretary
Commodity Futures Trading Commission
1115 21st Street, NW
Washington, DC

Re: Swap Execution Facilities and Trade Execution Requirement Proposed Rule and Post-Trade Name Give-up on Swap Execution Facilities (RIN 3038-AE25 and RIN 3038-AE79)

Dear Mr. Kirkpatrick:

The Securities Industry and Financial Markets Association’s Asset Management Group (“SIFMA AMG”)1 appreciates the opportunity to submit comments on the proposed revisions to the regulations of swap execution facilities (“SEFs”) and the trade execution requirement (“Proposal”) published by the U.S. Commodity Futures Trading Commission (“CFTC” or “Commission”) on November 30, 2018.2 SIFMA AMG also submits  comments in response to the Commission’s request for comment related to post-trade name give-up on SEFs.3

We believe that there are many aspects of the current swaps regime that function well, including providing asset managers with improved liquidity, expanded competition and pre- and post-trade price transparency. We support the Commission’s efforts to re-evaluate the CFTC’s current SEF regulations in light of five years of market experience, but we would recommend a more targeted set of enhancements. We agree with the Commission that any changes to the regulatory framework should promote the further development, innovation and the growth of the swaps market with the intent of attracting liquidity and increasing competition and price formation onto SEFs.

SIFMA AMG is supportive of the aspects of the SEF Proposal that would result in greater price transparency and trading opportunities for asset managers on behalf of their clients. However, as outlined in detail in this letter, SIFMA AMG is concerned about certain aspects of the Proposal that our membership believes would frustrate the statutory goals and threaten the progress that has already been made towards fair competition, liquidity and price transparency. Further, we view many aspects of the Proposal as interrelated, and if the Commission determines to proceed with this broad overhaul, we would urge the Commission to review our comments and recommended changes holistically and not to implement any one proposal independently without considering the overall market impact. Our comments herein are intended to address the Commission’s questions on how to enhance the current SEF framework and ensure that the Proposal will not disrupt our members’ access to liquidity and price discovery on SEFs.

1 SIFMA AMG brings the asset management community together to provide views on U.S. and global policy and to create industry best practices. SIFMA AMG’s members represent U.S. and global asset management firms whose combined assets under management exceed $45 trillion. The clients of SIFMA AMG member firms include, among others, tens of millions of individual investors, registered investment companies, endowments, public and private pension funds, UCITS and private funds such as hedge funds and private equity funds. They use futures and cleared swaps, as well as other derivatives, for a range of purposes, including as a means to manage or hedge investment risks such as changes in interest rates, exchange rates, and commodity prices.
2 Swap Execution Facilities and Trade Execution Requirement, 83 Fed. Reg. 61946 (Nov. 30, 2018).
3 Post-Trade Name Give-Up on Swap Execution Facilities, 83 Fed. Reg. 61571 (Nov. 30, 2018) (the “Name Give-Up Request for Comment.)