Aug 5, 2016

Coalition for Derivatives End-Users Comment Letter on the Net Stable Funding Ratio

Jul 13, 2016

CMC Comment Letter to the CFTC on Position Limits

CMC addresses several key elements left out of the Supplemental Proposal that should be reconsidered prior to the implementation of the final rule.

Jun 23, 2016

Joint Letter to CFTC

CMC, the Commercial Energy Working Group and the Electric Power Supply Association submitted a letter to the CFTC on Reg AT.

May 20, 2016

CMC Power Trading Institute Letter to FERC Regarding the CAISO Tarriff

This letter recognized flaws within the amendments proposed by CAISO, and its failures to:

  • Demonstrate that its proposal to reserve internal transfer capability and related withholding of congestions revenue rights are just and reasonable
  • Justify its proposal to expand circumstances in which it can suspend or limit convergence bidding
  • Provide any evidence that it requires authority to deem paths noncompetitive outside of its local market power mitigation process

Apr 18, 2016

Coalition Letter to Congress

CMC and The Commercial Energy Working Group offered support for Congressman Valadao’s Amendment to the Agriculture Appropriations Bill (FY 201) regarding the Swap Dealer de Minimis The letter also called for other member of Congress to support the amendment.

Mar 16, 2016

CMC Comment Letter on Reg AT

CMC and The Commoercial Energy Working Group expressed thoughts and concerns over the new Reg AT rule set forth by the CFTC.

Feb 9, 2016

Coalition Letter to Congress

CMC asked Senate members join Senator Roberts and Boozman and support amendment 3077 during the consideration of S. 2012, “The Energy Policy Modernization Act of 2015” (the “Energy Bill”).

Feb 5, 2016

CMC Margin Rule Working Group Letter to the CFTC

The three primary points/asks made in this letter are:

  • Primarily should mean Predominately—85% of revenue is derived from trading
  • Insert “Financial” in front of assets in the definition of financial end-user definition
  • Recognize that Commercials are not trading when using financial assets to hedge commercial risk

http://comments.cftc.gov/PublicComments/ViewComment.aspx?ID=60627&GUID=514b67cf-1821-4cc3-a3eb-df3e3429cf19

Feb 2, 2016

CMC Letter to the Senate Ag Committee

CMC asked that the Committee members join Senator Roberts and Boozman and support amendment 3077 during the consideration of S. 2012, “The Energy Policy Modernization Act of 2015” (the “Energy Bill”).

Jan 15, 2016

Industry Amicus Brief in CFTC Case Regarding the Elements in an Attempted Manipulation Case

Nov 4, 2015

Ag Coalition Letter to The President regarding a new CFTC Commissioner Nomination

Nov 3, 2015

Comment Letter to Basel Committee on Banking Supervision on Leverage Ratio

CMC and the Managed Funds Association submitted a comment letter about the adverse effects of the Basel III supplementary leverage ratio on end user and buy-side market participants.

Oct 30, 2015

Comment Letter to CFTC regarding Swap Data Recordkeeping and Reporting Requirements for Cleared Swaps

Sep 29, 2015

Coalition for Derivatives End-Users Comment Letter in support of the Moore-Stivers-Fudge-Gibson End-User Bill

Sep 14, 2015

Comment Letter to the CFTC in support of the ICE Futures U.S., Inc. Submission No. 15-101 Regarding Amendments to Position Limits for Financial Power Futures Contracts

Aug 26, 2015

Letter to Financial Times regarding Thomas Hoenig’s article on Leverage Ratio

https://www.ft.com/content/fb14a95e-4a70-11e5-b558-8a9722977189

Mar 28, 2015

Comment Letter Regarding the Commodity Futures Trading Commission Energy and Environmental Markets Advisory Committee Discussion of Position Limits

Jan 22, 2015

Comment Letter to the CFTC regarding Agricultural Advisory Committee Discussion of Position Limits for Derivatives

CMC submitted a comment letter to the CFTC to recognize their efforts to understand the effects of its proposed regime for new federal position limits and to again highlight effects on end-users in the physical and financial commodity markets.  Issues included: changes to deliverable supply determinations, the definition of bona fide hedging, recognition of risk, non-enumerated hedges and aggregation.

Jan 13, 2015

Comment Letter to the CFTC regarding Regulation 1.35

CMC set forth three points for consideration by the Commission:  Market participants who do not hold a fiduciary relationship with customers should not be required to comply with the unduly burdensome requirements of 1.35.  Many would choose to forgo SEF or DCM membership and access the markets through agents rather than shoulder the burden of 1.35.  This would decrease SEF and DCM membership, increase costs to market participants and consumers, and diminish transparency in the market place.; Excluding members and registrants with no fiduciary duty to customers from the burdens of 1.35 is consistent with Commission precedent and congressional intent.; and the intersection between Commissioner Regulations 1.31 & 1.35 is a concern to market participants that should be addressed.

Dec 22, 2014

Forward Contracts with Embedded Volumetric Optionality

CMC, in conjunction with the Coalition for Derivatives End-Users, sent a letter to the CFTC regarding  concerns that certain supply contracts for physical delivery, that are used by end-user companies to ensure that their businesses have the physical commodities necessary to operate, would be treated as swaps.

Dec 2, 2014

Coalition Letter on Margin for Uncleared Swaps

In conjunction with the Coalition for Derivatives End-Users, CMC submitted this letter requesting clarification and further consideration of certain parts of the Margin for Uncleared Swaps Proposal in order to ensure that the final rule will effectively regulate the derivatives markets without imposing undue burdens on derivatives end-users.

Nov 24, 2014

Comment Letter to Basel Committee on Banking Supervision

CMC sent a letter to the Basel Committee on Banking Supervision regarding the adverse effects of the Basel III Supplementary Leverage Ratio (“SLR”).   Given the way the SLR treats segregated initial margin, CMC members are concerned that the current SLR calculation would unnecessarily and significantly increase the costs of clearing.

Nov 24, 2014

Margin and Capital Requirements for Covered Swap Entities

CMC, in conjunction with the Coalition for Derivatives End-Users, submitted this letter requesting clarification and further consideration of certain parts of the Margin for Uncleared Swaps Proposal in order to ensure that the final rule will effectively regulate the derivatives markets without imposing undue burdens on derivatives end-users.

Nov 4, 2014

Joint Trade Association Letter to the Financial Stability Board on Early Termination Rights Suspension

Jul 25, 2014

Comment Letter to the CFTC subsequent to the Staff Roundtable on Position Limits and Aggregation

As a part of the reopened public comment period on these proposed rules surrounding the CFTC Staff Roundtable on Position Limits which was held on June 19, 2014, CMC submitted a letter to the CFTC reemphasizing the crucial end-user and customer issues which need to be addressed before the Position Limits and Aggregation rules are finalized. Specific issues emphasized included: deliverable supply estimates; the definition of bona fide hedging – including anticipatory, merchandising and processing hedges, non-enumerated hedges, and cross-hedging; the inclusion of trade options within position limits; and aggregation concerns.

May 27, 2014

Comment Letter to the CFTC regarding Part 45 Recordkeeping and Reporting

CMC submitted a detailed comment letter to the CFTC regarding end-user issues and concerns with swap data recordkeeping and reporting.  The letter included policy-level recommendations regarding end-user reporting, cleared swap reporting, data provided to swap data repositories (SDRs), format of SDR reporting, auditing of swaps data, and confirmation data.  The letter also addressed specific questions posed by the CFTC on these topics.

Apr 25, 2014

Joint Coalition Letter to the CFTC regarding Deliverable Supply Estimates within the proposed Position Limits Rule

A CMC-led coalition of agricultural and energy trade associations submitted a letter to the CFTC requesting the Commission determine current estimated deliverable supply for each of the 28 physical commodities covered by the proposed Position Limits rule to better position the Commission and the public to deliberate and comment upon the appropriate federal spot month position limit levels for each of the covered commodities.

Apr 17, 2014

Joint Coalition Comment Letter to the CFTC regarding Embedded Volumetric Optionality Discussion at CFTC’s Dodd-Frank End-User Roundtable

CMC joined with NGSA and NCGA to submit a joint comment letter to follow-up upon the discussion at the April 3 End-User Roundtable, and requested the Commission provide guidance regarding the seven-element interpretation which allows exclusion of forward contracts with embedded volumetric optionality from swap regulation.  The requested guidance would eliminate part 7 from the interpretation and ensure that parts 4 and 5 of the interpretation include puts.

Apr 17, 2014

Joint Coalition Comment Letter to the CFTC regarding Regulation 1.35 Discussion at CFTC’s Dodd-Frank End-User Roundtable

A coalition of trade associations representing agricultural customers and end-users led by CMC submitted a joint comment letter to follow-up upon the discussion at the April 3 End-User Roundtable and recommended that the Commission interpret its recordkeeping requirements under Regulation 1.35 as applicable to those that execute customer orders and provide a fiduciary duty to customers, not to end-users or customers.

Feb 10, 2014

Comment Letter to the CFTC regarding the proposed Position Limits Rule and related Aggregation Rule

As a part of the public comment period, CMC submitted a comprehensive letter to the CFTC regarding the end-user and customer issues within the Commission’s proposed position limits rule.  Specific issues discussed included: the definition of bona fide hedging – including anticipatory hedging, portfolio hedging, and gross versus net hedging, the inclusion of trade options within position limits, deliverable supply estimates and the position limit levels, aggregation concerns, and reporting requirements.  Also included with the letter was a list of specific examples of commercial transactions CMC believes to be examples of bona fide hedging transactions.

Dec 12, 2013

Letter to the CFTC requesting Interpretative Guidance regarding Regulation 1.35

CMC requested that the Commission issue guidance interpreting the requirement to retain records of electronic communications that “lead to the execution of a transaction in a commodity interest and related cash or forward transactions” in CFTC Regulation 1.35 as inapplicable to members of CFTC-designated contract markets (DCMs) or swap execution facilities (SEFs) unless the member is otherwise registered and acting on behalf of a customer.

Sep 24, 2013

Letter to the CFTC regarding Anticipatory Hedging in a Future Position Limits Rule

CMC highlighted support for an enumerated regulatory hedge exemption specifically for bona fide anticipatory hedging activity in any CFTC position limits regime.  CMC also pointed out that the Commodity Exchange Act as amended by Dodd-Frank expressly authorized incorporating anticipatory hedging into the definition of bona fide hedging.

May 6, 2013

Letter to the Chairman and Ranking Member of the Senate Committee on Agriculture, Nutrition, and Forestry regarding Reauthorization of the Commodity Exchange Act

In response to a request from the Senate Agriculture Committee requesting input on issues related to reauthorization of the Commodity Exchange Act, CMC submitted a letter highlighting member issues in two major categories: improvements to the protection of customer collateral in derivatives markets and concerns related to the implementation of various provisions of the Dodd-Frank Act with respect to the impacts on commercial end-users.  Issues related to the following topics were addressed in the letter: Customer Protection rule, Regulation 1.35, Swap Dealer definition, reporting and recordkeeping, real-time reporting, inter-affiliate transactions, position limits, and bona fide hedging.