Open and Non-Discriminatory Access to Swap Clearing Organizations is Critical for the Sound Operation of Swap Market

NEW YORK--(BUSINESS WIRE)-- In connection with the August 20^th SEC and CFTC Public Roundtable to Discuss Governance and Conflicts of Interest in the Clearing and Listing of Swaps, the Wholesale Markets Brokers’ Association, Americas (WMBAA) announced today that open and non-discriminatory access to swap clearing organizations is critical for the sound operation of swap markets. A central component of the Dodd-Frank Wall Street Reform and Consumer Protection Act eliminates counter-party risk by requiring swaps to be cleared through Securities Clearing Agencies and Derivatives Clearing Organizations. The Dodd-Frank Act specifically requires these clearing organizations to provide open and non-discriminatory access for clearing swap trades executed through unaffiliated swap execution facilities.

“Congress properly identified open and non-discriminatory access to central counter-party clearing as one of the critical elements for restoring confidence to the swap markets,” said Julian Harding, Executive Director at Tradition and Chairman of the WMBAA. “Direct or indirect impediments created to enhance a clearing organization’s affiliated trading platform would frustrate Congressional intent. Competition in execution, with its attendant benefits to all participants, is inherently encouraged in the legislation but would be stifled as a result of such monopolistic tendencies.”

The WMBAA calls on the SEC and CFTC to establish rules that will preserve the sound operation of swap markets by ensuring that Securities Clearing Agencies and Derivatives Clearing Organizations do not abuse their special position within the new swap market structure.

Wholesale Markets Brokers’ Association, Americas

The Wholesale Markets Brokers’ Association, Americas (WMBAA) is an independent industry body representing the largest inter-dealer brokers (IDBs) operating in the North American wholesale markets across a broad range of financial products. The five founding members of the group are: BGC Partners; GFI Group; ICAP; Tradition; and Tullett Prebon. The association seeks to promote the quality and standards of the industry and the critical role played by wholesale brokers in the efficient functioning of financial markets, working with key public policymakers on regulation and oversight of over-the-counter (OTC) markets and their participants. For more information, please go to www.wmbaa.org.

CONTACT:

of Fleishman-Hillard on behalf of WMBAA
Emmeline Kuhn, 212-453-2212
or
Gerard Carney, 212-453-2227

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:   Other Consumer  Professional Services  Banking  Finance  Other Professional Services  Retail  Other Retail  Consumer

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