Meeting Date:
Friday, April 22, 2011
CFTC Staff:
Lee Ann Duffy
Mark Fajfar
Frank Fisanich
Sarah Josephson
John Lawton
Thomas J. Smith
Organization(s):
Riverside Risk Advisors
External Attendees:
Frank Iacono (Riverside Risk Advisors)
Additional Information:
The meeting was a general discussion of how the major swap participant (MSP) definition will apply to various types of financial swaps, and the impact of collateral requirements on the swaps. Riverside asserted that standardization of the credit relationship between dealers and end-users will impede customization of swaps. In particular, it will discourage major banks’ use of swaps to transfer financial risks to other parties. Riverside said that the end-user exception from clearing should be available for such swaps, because the collateralization required for clearing would make such swaps not economically viable.
