Swap Entities Regulation - Comment Letter - Morgan Stanley - September 30, 2011
|Final Rule Issue||Effective Date||Compliance Date, FCMs, DCMs, DCOs||Compliance Date, SEFs|
|April 9, 2012||October 1, 2012||October 1, 2012||TBA|
Customer Clearing Documentation and Timing of Acceptance for Clearing
September 30, 2011
Morgan Stanley explains that their primary concern with the Proposed Rule "is the Commission's intention to impose a blanket prohibition on the use of arrangements that would permit disclosure of the identity of a customer's ESD to its clearing firm, or limit the number of ESDs with whom a customer may trade or the size of swaps executed with a particular ESD that a clearing firm will clear. The Proposed Prohibitions would bar the use of arrangements whereby a clearing firm contractually commits to an ESD to clear specified swaps on behalf of a customer. Morgan Stanley's view is that such contractual arrangements, which include the allocation of so-called sub-limits to ESDs, are critical tools for providing access to the swaps market to all but the largest buy-side institutions, including commercial end-users."