SIFMA and the International Swaps and Derivatives Association, Inc. (“ISDA”) have submitted comments to the CFTC on the made-available-to-trade (“MAT”) submission by MarketAxess for certain credit default swaps pursuant to CEA Section 5(c) (“Common Provisions Applicable to Registered Entities”) and CFTC Rule 40.6(a) (“Self-Certification of Rules”).
According to the comment letter, SIFMA and ISDA support the contract-by-contract approach taken by MarketAxess with respect to the six factors set out in the submission. The agencies also support MarketAxess’s demonstration of how it supports the trading of the credit default swaps. Additionally, the agencies request that the CFTC address the cross-border packaged swap issues that “will become even more important as a result of a MAT determination.”
Lofchie Comment: In effect, the trade associations are saying that the CFTC’s “MAT Rules” should be revised to require a more detailed and specific submission request by a SEF and a more thorough review by the CFTC. See similar comments in yesterday’s news: Javelin SEF Submits More Limited MAT Determination to CFTC (with SIFMA AMG Comment Letter).