In a letter filed with the SEC (Commission) today, the FIA Principal Traders Group (FIA PTG) requested the Commission eliminate the public disclosure aspect of the security-based swaps proposal and focus on regulatory reporting instead.
FIA PTG identified several areas where the cost-benefit analysis and economic justification provided by the SEC in the Proposal are lacking.
FIA PTG also stated that the "Commission failed to consider relevant academic research regarding the harms of publicly disclosing confidential trading positions, including, copycatting, front-running, and fewer incentives to engage in fundamental research."
FIA PTG urged the "Commission to eliminate the public reporting aspect of the Proposal, focus on analyzing the available data it already has at its disposal and, to the extent it believes more information is required by the official sector, to implement a regulatory-reporting regime for large positions."
Download the letter here.
- FIA PTG
- Public Policy Submissions
- Regulatory Responses