The Managed Funds Association (MFA) laid out a policy road map for the Commodity Futures Trading Commission (CFTC) to promote capital formation and improve market efficiencies.
MFA’s recommendations call for the CFTC to:
- Streamline systemic risk reporting. Work with the Securities and Exchange Commission (SEC) to refocus Form PF on its statutory purpose of assessing systemic risk by eliminating duplicative, overly granular reporting that raises costs without improving regulatory insight.
- Codify the Qualified Eligible Person (QEP) exemption. Pursue rulemaking to more permanently exempt private fund managers serving sophisticated investors from duplicative CFTC and National Futures Association (NFA) registration where SEC oversight already applies.
- Expand cross-margining of related Treasury positions. Allow customer cross-margining for related Treasury securities, futures, and options so hedged positions are not double-margined, supporting liquidity and resilience in U.S. Treasury and derivatives markets.
- Modernize derivatives market infrastructure. Support full electronic trading of invoice spreads to improve transparency, reduce operational risk, and enhance market efficiency.
- Strengthen data security and protect confidential information. Enhance safeguards for sensitive regulatory data and limit unnecessary data collection to protect investors, firms, and market integrity.
- Provide targeted audit relief for private funds. Allow funds that launch or wind down near year-end to avoid unnecessary duplicative audits, reducing investor costs while maintaining transparency and protections.
The recommendations were spelled out in a letter to CFTC Chairman Michael Selig. The recommendations align with the Trump Administration’s calls to review regulations that unnecessarily burden industry and build on efforts to rightsize regulatory oversight.
“Duplicative and outdated regulation raises costs for investors and slows economic growth,” Bryan Corbett, MFA president and CEO, said. “This roadmap encourages the CFTC to work in lockstep with the SEC, eliminate overlapping rules, and refocus regulation on policies that strengthen market efficiency, liquidity, and resilience. We stand ready to partner with Chairman Selig on streamlining regulations and advancing his derivatives and digital asset policy goals.”