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Better Markets Comment Letter to the CFTC regarding Registration with Alternative Compliance for Non-U.S. Derivatives Clearing Organizations

Better Markets filed this comment letter on a Commodity Futures Trading Commission’s (CFTC) notice of proposed rulemaking setting forth a new exemption from certain U.S. regulations for certain derivatives clearing organization (DCO) organized outside of the United States.  Despite the proposed naming convention, the CFTC’s “alternative compliance” proposal is not a means for DCOs to comply with U.S. law at all but rather, an explicit and unlawful exemption from most regulatory DCO requirements combined with a de facto and unlawful exemption from most statutory DCO requirements.  For this reason, and others, Better Markets encourages the CFTC to promptly withdraw the proposal, along with companion proposals to further exempt non-U.S. clearing organizations and intermediaries facilitating swaps clearing for U.S. customers from U.S. statutory and regulatory requirements. 

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