The Honorable Frank Lucas
Chairman
House Committee on Agriculture
1301 Longworth House Office Building
Washington, DC 20515

The Honorable Collin Peterson
Ranking Member
House Committee on Agriculture

The Honorable Tim Johnson
Chairman
U.S. Senate Committee on Banking, Housing, and Urban Affairs

The Honorable Richard C. Shelby
Ranking Member
U.S. Senate Committee on Banking, Housing, and Urban Affairs

The Honorable Debbie Stabenow
Chairwoman
U.S. Senate Committee on Agriculture, Nutrition, and Forestry

The Honorable Pat Roberts
Ranking Member
U.S. Senate Committee on Agriculture, Nutrition, and Forestry

The Honorable Spencer Bachus
Chairman
House Financial Services Committee

The Honorable Barney Frank
Ranking Member
House Financial Services Committee

Re: Dodd-Frank Act Title VII Final Rule Publication

Dear Chairmen and Ranking Members:

The undersigned organizations represent thousands of U.S. companies that use over-the-counter derivatives to manage business risks due to changing commodity prices, fluctuating currency exchange rates, and variable interest rates. While we support efforts to enhance transparency in the derivatives markets and minimize unnecessary regulatory burdens on end-users, we are concerned about the difficultly of promulgating the complex and numerous rules required under Dodd-Frank within the short timeline dictated by the Act. We strongly urge Congress to extend the deadline for final rule publication to allow regulators sufficient time to develop a transparent and orderly system that minimizes unintended consequences.

Dodd-Frank requires federal agencies to write nearly 240 rules—most in a single year. The extraordinary pace of Dodd-Frank rulemaking is apparent: Harvard Law Professor Hal Scott calculated that, on average, the Securities and Exchange Commission (SEC) issued fewer than 10 new rules per year before the crisis, but has issued 59 rules since Dodd-Frank was enacted in July 2010. Similarly, the Commodity Futures Exchange Commission (CFTC) issued fewer than six new rules per year before the crisis, but has issued 37 rules since enactment of Dodd-Frank. This represents a pace of rulemaking six times the rate before enactment of Dodd-Frank. Download the full letter (PDF)

Mr. David A. Stawick
Secretary
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581

Via agency website

Re: Swap Trading Relationship Documentation Requirements for Swap Dealers and Major Swap Participants / 17 CFR Part 23 / RIN 3038–AC96

The Coalition for Derivatives End-Users (the “Coalition”) is pleased to respond to the request for comments by the U.S. Commodity Futures Trading Commission (“CFTC”) regarding its proposed rule issued under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) entitled “Swap Trading Relationship Documentation Requirements for Swap Dealers and Major Swap Participants” to ensure that end-users are able to continue to efficiently manage their business risks, invest in our economy, and create jobs.

The Coalition represents companies that employ derivatives predominantly to manage risks. Hundreds of companies have been active in the Coalition throughout the legislative and regulatory process, and our message is straightforward: The Coalition seeks to ensure that financial regulatory reform measures promote economic stability and transparency without imposing undue burdens on derivatives end-users. Imposing unnecessary regulation on derivatives end-users, who did not contribute to the financial crisis, would create more economic instability, restrict job growth, decrease productive investment, and hamper U.S. competitiveness in the global economy.  Download the full letter (PDF)

House Financial Services Capital Markets Subcommittee 2129 Rayburn House Office Building Washington, DC 20515

Re: Support for H.R. 1610, Business Risk Mitigation and Price Stabilization Act of 2011

To the Members of the House Financial Services Capital Markets Subcommittee:

The Coalition for Derivatives End-Users represents thousands of companies across the United States that employ derivatives to manage risks that they face in connection with their businesses. The Coalition has been actively engaged in the legislative process that culminated with passage of the Dodd-Frank Act and with the bill’s implementation. While the Act does much to increase transparency in the derivatives markets, it also could be interpreted as imposing unnecessary burdens on end-user companies. Margin requirements are perhaps the most harmful. Today, we write to offer our support for H.R. 1610, the Business Risk Mitigation and Price Stabilization Act of 2011, which would codify an end-user exemption from margin requirements and eliminate a significant source of uncertainty now facing the business community.

We appreciate all of the work that you and your colleagues have undertaken to craft legislation designed to create a safer, more transparent financial system and to oversee the regulators’ implementation of the Dodd-Frank Act. Throughout the legislative and regulatory implementation processes, the Coalition has advocated for strong derivatives regulation that brings transparency to over-the-counter derivatives market; imposes thoughtful, new regulatory standards that enhance the stability of the financial system; and provides a strong, unambiguous exemption from mandatory clearing and margining requirements for all end-users, including both financial and non-financial end-users. Download the full letter (PDF)

Futures Industry Association
The Financial Services Roundtable
Institute of International Bankers
Insured Retirement Institute
International Swaps and Derivatives Association
Securities Industry and Financial Markets Association
U.S. Chamber of Commerce

Via Electronic Submission: http://comments.cftc.gov
David A. Stawick Secretary Commodity Futures Trading Commission Three Lafayette Centre 1155 21st Street, NW Washington, DC 20581
Re: Reopening and Extension of Comment Periods for Rulemakings Implementing the
Dodd-Frank Wall Street Reform and Consumer Protection Act

Dear Mr. Stawick:

We are writing to the Commodity Futures Trading Commission (the “Commission”) in response to the Commission’s action re-opening and extending comment on proposed rules as published in the Federal Register May 4, 2011 and further regarding the process by which the Commission will finalize its proposed rules (the “CFTC Proposed Rules”) establishing a comprehensive new framework for the regulation of swaps under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). While we appreciate the Commission’s recognition of the need for additional comment and feedback given the volume and complexity of the proposed rules as required by Title VII, we believe the extension, as proposed, is inadequate to ensure an efficient and timely implementation of the Title. Rather, we strongly urge the Commission to re-propose the CFTC Proposed Rules, along with an implementation timetable and guidance on the extent of their extraterritorial application, to allow an additional comment period after the rule proposals have been amended to reflect comments received. Download the full letter (PDF)

Office of Financial Markets
Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220

Submitted via Federal eRulemaking Portal, www.Regulations.gov

Re: Determination of Foreign Exchange Swaps and Forwards under the Commodity Exchange Act, Notice of Proposed Determination 76 Fed. Reg. 25774 (May 5, 2011)

The Coalition for Derivatives End-Users (the “Coalition”), which represents hundreds of companies that employ derivatives predominantly to manage risk, is pleased to respond to the Department of the Treasury’s Notice of Proposed Determination announcing the Treasury’s decision to exempt foreign exchange (“FX”) swaps and forwards from the central clearing and trading requirements under the Commodity Exchange Act (“CEA”) as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”).

The Coalition fully supports Treasury’s determination, which recognizes the unique characteristics of the FX market and its strong performance during the financial crisis of 2008.1 As Treasury noted in its Fact Sheet on the Proposed Determination, the FX market “already reflect[s] many of Dodd-Frank’s objectives for reform—including high levels of transparency, effective risk management, and financial stability.” We agree that the FX market is “markedly different from other derivatives markets,” that the market helps “to mitigate risk and . . . ensure stability,” and that imposing the panoply of regulations that will apply to the derivatives market on the FX market actually could jeopardize the market’s current sound, risk-reducing practices. More specifically, we concur with the Treasury’s assessment that (1) the FX swaps and forwards market already operate with higher levels of transparency; (2) FX swaps and forwards are unique when compared to other derivatives products; and (3) the FX market already is subject to strong, comprehensive oversight. Download the full letter (PDF)

Mr. David A. Stawick
Secretary
U.S. Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581

Via agency website

Re: Comment on Proposed Rule “Swap Data Recordkeeping and Reporting Requirements: Pre-enactment and Transition Swaps”; 76 Fed. Reg. 22833 (Apr. 25, 2011)

The Coalition for Derivatives End-Users (the “Coalition”) is pleased to respond to the request for comments by the U.S. Commodity Futures Trading Commission (the “Commission”) regarding its proposed rule under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) entitled “Swap Data Recordkeeping and Reporting Requirements: Preenactment and Transition Swaps.” We are glad to work with the Commission to ensure that the interpretive order reflects legislative intent, while also limiting unnecessary restrictions that may impede the ability for end-users to efficiently and effectively manage their risks.

The Coalition represents companies that employ derivatives predominantly to manage risks. Hundreds of companies have been active in the Coalition throughout the legislative and regulatory process, and our message is straightforward: The Coalition seeks to ensure that financial regulatory reform measures promote economic stability and transparency without imposing undue burdens on derivatives end-users. Imposing unnecessary regulation on derivatives end-users, who did not contribute to the financial crisis, would create more economic instability, restrict job growth, decrease productive investment, and hamper U.S. competitiveness in the global economy. Download the full letter (PDF)

David A. Stawick
Secretary
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street NW
Washington, DC 20581

Via agency website

Re: “Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants” / File Number RIN 3038-AC97

I. Introduction and Summary of Comments

The Coalition for Derivatives End-Users (the “Coalition”) is pleased to respond to the request for comments by the Commodity Futures Trading Commission (“CFTC” or the “Commission”) entitled “Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants.” The Coalition represents companies that use derivatives predominantly to manage risks. Hundreds of companies have been active in the Coalition throughout the legislative and regulatory process, and our message is straightforward: Financial regulatory reform measures should promote economic stability and transparency without imposing undue burdens on derivatives end-users. Imposing unnecessary regulation on derivatives end-users, who did not contribute to the financial crisis, would create more economic instability, restrict job growth, decrease productive investment, and hamper U.S. competitiveness in the global economy.

We are pleased to offer comments focused on ensuring that the proposed rule helps to regulate effectively the derivatives markets, does not pose undue burdens on the business community, and accurately reflects both the letter of the statute and legislative intent.

Our comment letter is structured as follows:

• In Section II we discuss policy and economic reasons why financial end-users should not be treated differently under the new regulatory structure and should not be subjected to margin requirements.
• Section III explains why parts of the proposed rule would unnecessarily burden endusers and offers alternative formulations that comport with the statute while imposing less financial hardship on the business community. Specifically, we believe that
• high margin requirements for uncleared swaps create unnecessary incentives to use cleared swaps;
• requiring the negotiation of new credit support arrangements would create substantial new legal and administrative costs;

Download the full lettter (PDF)

Jennifer J. Johnson
Secretary
Board of Governors of the Federal Reserve
System
20th Street and Constitution Avenue NW
Washington, DC 20551

Gary K. Van Meter
Acting Director
Office of Regulatory Policy
Farm Credit Administration
1501 Farm Credit Drive
McLean, VA 22102

Robert E. Feldman
Executive Secretary
Attention: Comments
Federal Deposit Insurance Corporation
550 17th Street NW
Washington, DC 20429

Department of the Treasury
Office of the Comptroller of the Currency
250 E Street SW, Mail Stop 2-3
Washington, DC 20219

Alfred M. Pollard
General Counsel
Federal Housing Finance Agency
Attention: Comments/RIN 2590-AA45
1700 G Street NW, Fourth Floor
Washington, DC 20552

Via agency website

Re: “Margin and Capital Requirements for Covered Swap Entities” / File Numbers RIN 1557–AD43, RIN 7100 AD74, RIN 3064–AD79, RIN 3052–AC69, and RIN 2590–AA45 I. Introduction and Summary of Comments

The Coalition for Derivatives End-Users (the “Coalition”) is pleased to respond to the request for comments by the Prudential Regulators1 regarding the notice of proposed rulemaking entitled “Margin and Capital Requirements for Covered Swap Entities.” The Coalition represents companies that use derivatives predominantly to manage risks. Hundreds of companies have been active in the Coalition throughout the legislative and regulatory process, and our message is straightforward: Financial regulatory reform measures should promote economic stability and transparency without imposing undue burdens on derivatives end-users. Imposing unnecessary regulation on derivatives end-users, who did not contribute to the.. Download the full letter (PDF)

Ms. Claire Stapleton
Consumer Financial Protection Bureau Implementation Team
1801 L Street, NW
Washington, DC 20036

Re: Notice of Proposed Privacy Act System of Records, Treasury DO.315—CFPB Implementation Team Consumer Inquiry and Complaint Database, 76 Fed. Reg. 1507 (Jan. 10, 2011)

Dear Ms. Stapleton:

We are submitting these comments on behalf of the U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness (“CCMC”) and the U.S. Chamber Institute for Legal Reform (“ILR”). The U.S. Chamber of Commerce (the “Chamber”) is the world’s largest business federation, representing the interests of more than three miiiion companies of every size, sector, and region. Because of the extraordinarily broad jurisdiction conferred upon the Consumer Financial Protection Bureau (“Bureau”) by the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), 1large numbers of the Chamber’s members—including numerous businesses outside the financial services sector—will be affected by the Treasury Department’s notice of proposed Privacy Act system of records (“Notice”). The Chamber created CCMC to promote a modern and effective regulatory structure for capital markets to fully function in a 2s1t century economy. ILR is an affiliate of the Chamber dedicated to making our nation’s overall civil legal system simpler, fairer and faster for all participants. Download the full letter (PDF)

The Honorable Timothy F. Geithner
Secretary
U.S. Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220

Dear Secretary Geithner:

Our organizations represent businesses in a wide range of sectors of the American economy. We firmly support sound consumer protection regulation that weeds out fraudulent and predatory actors and ensures consumers receive clear and concise disclosures about financial products.

Building a new Consumer Financial Protection Bureau (CFPB) from the ground up presents a significant challenge for regulators who must construct a nimble, effective, transparent, and fair new agency that fulfills its consumer protection mandate while ensuring that consumers and small businesses continue to have access to affordable credit from a wide range of sources.

To that end, we believe the CFPB should aim to establish an effective and efficient structure, empower consumers through appropriate disclosure, and prevent duplicative regulation through coordination with state, federal, and prudential regulators. This letter presents some of our priority recommendations. We look forward to working with the team developing the new Bureau to help achieve these objectives. Download the full letter (PDF)