Market Participants Express Concerns With CFTC SEF Rule Proposals

Market participants and industry associations raised a number of concerns on the CFTC proposals to amend swaps trading rules.

Three aspects of the CFTC swap execution facility ("SEF") proposal came up repeatedly in comment letters:

• Ban on Pre-Trade Communications. Many commenters urged the CFTC not to adopt a proposed ban on pre-execution communications. Trade groups ISDA, SIFMA, the Managed Funds Association ("MFA") and SIFMA AMG, as well as SEF operators Bloomberg and Tradeweb, among others, urged the CFTC not to adopt this aspect of the proposal.

• Made-Available-to-Trade Process. Commenters generally raised concerns with the proposed approach to making swaps "available to trade," urging a process more controlled by the CFTC and responsive to market participants and market practice.