On behalf of the NIBA members, the board of directors have submitted the following comment letters to proposed amendments to CFTC Regulation 1.22 and 1.35.
NIBA Comments on CFTC Reg. 1.22 (Residual Interest): We agreed with the proposal to eliminate the automatic margin deadline change in 2018. We also agreed that a comprehensive study of whether this rule is enhancing any customer protection and is practical and affordable for the brokerage community as a whole. We once again urged that the NIBA be in on the discussions at the Commission re: the study and any further changes to this rule.
NIBA Comments on CFTC Reg. 135 (Recording - including oral conversations): We agreed that CTAs in general should be exempt from this rule because of the nature of their relationships with their customers' transaction decisions. We also reiterated that the threshold for ememption for "small IBs" should be re-evaluated by the Commission in light of what we know about revenues generated in IBs from the NFA records and from our member FCMs.
