In a letter submitted to the CFTC today, FIA PTG raised concerns with three aspects of the swap execution facility (SEF) rule proposal: impartial access; execution methods and straight-through-processing. FIA PTG believes the proposal would allow SEFs to discriminate among market participants, including potential new liquidity providers, which in turn would reduce competition and decrease liquidity for end-users. FIA PTG also raised concerns with the proposed execution method flexibility encouraging the Commission to maintain minimum standards that protect multilateral, competitive and transparent execution methods on SEFs. Finally, FIA PTG said that the proposal would significantly alter the current straight-through processing requirements for SEF trading, which have successfully reduced market and operational risk.
The full letter is available here.