User: 
---
           
return answer between these tag <answer> write answer here</answer>
**Prompt**:
You have a deep understanding of the language of financial markets and its regulations. Please analyze the stakeholder comments in response to the US Security and Exchange Commission’s proposed rules regulating financial market participants. Examine the approval scores of the proposed rule (score ranging from -1 to 1, where -1 is strong disapproval and 1 is strong approval). Do you agree with the 2) output the number of positive terms indicating approval, neutral terms and negative terms indicating disapproval. 3) number of suggestions provided in the comment
Output in this format: Approval Score, # Positive Terms, # Neutral Terms, # Negative Terms, #Suggestions.
**Example Output**:
{
    "approvalScore": 0,
    "positiveTermsCount": 0,
    "neutralTermsCount": 0,
    "negativeTermsCount": 0,
    "suggestionsCount": 0,
}

Assistant: Understood. I will strictly follow these instructions in this conversation.
User: 
You are required to think through the problem carefully before answer and present your thinking in response.
Your thinking should not stop until you are confident.

First, break the task into parts and evaluate step by step whether your predicted answer is correct.

On each step, evaluate your thinking also.

The problem is as follows:

You have a deep understanding of the language of financial markets and its regulations. Please analyze the stakeholder comments in response to the US Security and Exchange Commission’s proposed rules regulating financial market participants. Examine the approval scores of the proposed rule (score ranging from -1 to 1, where -1 is strong disapproval and 1 is strong approval). Do you agree with the 2) output the number of positive terms indicating approval, neutral terms, and negative terms indicating disapproval. 3) number of suggestions provided in the comment. Output in json form Approval Score, # Positive Terms, # Neutral Terms, # Negative Terms, #Suggestions.

The comment is below:

M E M O R A N D U M 
   
 
 T O :   
 
 F i l e   N u m b e r   S 7 - 0 8 - 1 2   
 
 F R O M :   
 
 T e e n   S h e n g   
 S p e c i a l   C o u n s e l   
 O f f i c e   o f   F i n a n c i a l   R e s p o n s i b i l i t y ,   D i v i s i o n   o f   T r a d i n g   a n d   M a r k e t s   
 U . S .   S e c u r i t i e s   a n d   E x c h a n g e   C o m m i s s i o n   
 
 D A T E :   
 
 O c t o b e r   8 ,   2 0 1 3   
 
 R E :   
 
 M e e t i n g   w i t h   t h e   M a n a g e d   F u n d s   A s s o c a t i o n   
 
 O n   O c t o b e r   8 ,   2 0 1 3 ,   C o m m i s s i o n   s t a f f   m e t   i n - p e r s o n   a n d   b y   t e l e p h o n e   w i t h   
 r e p r e s e n t a t i v e s   o f   t h e   M a n a g e d   F u n d s   A s s o c a t i o n   ( “ M F A ” )   t o   d i s c u s s   t h e   p r o p o s e d   r u l e s   
 a n d   r u l e   a m e n d m e n t s   o n   c a p i t a l ,   m a r g i n ,   a n d   s e g r e g a t i o n   r e q u i r e m e n t s   f o r   s e c u r i t y - b a s e d   
 s w a p   d e a l e r s   a n d   m a j o r   s e c u r i t y - b a s e d   s w a p   p a r t i c i p a n t s   a n d   c a p i t a l   r e q u i r e m e n t s   f o r   
 b r o k e r - d e a l e r s   ( r e l e a s e   n u m b e r   3 4 - 6 8 0 7 1 ) .     R e p r e s e n t a t i v e s   o f   t h e   F i n a n c i a l   I n d u s t r y   
 R e g u l a t o r y   A u t h o r i t y   ( “ F I N R A ” )   w e r e   a l s o   p r e s e n t   v i a   t e l e p h o n e .   
 
 C o m m i s s i o n   r e p r e s e n t a t i v e s   i n c l u d e d   J o h n   R a m s a y ,   C h r i s t i a n   S a b e l l a ,   M i c h a e l   
 
 M a c c h i a r o l i ,   T o m   M c G o w a n ,   R a n d a l l   R o y ,   W e n c h i   H u ,   G e n a   L a i ,   S h e i l a   S w a r t z ,   
 V a l e n t i n a   D e n g ,   a n d   T e e n   S h e n g   f r o m   t h e   D i v i s i o n   o f   T r a d i n g   a n d   M a r k e t s ;   a n d   D o u g l a s   
 S c h e i d t ,   D a v i d   J o i r e ,   R i c h a r d   R o d g e r s ,   a n d   S t e v e   P a c k s   f r o m   t h e   D i v i s i o n   o f   I n v e s t m e n t   
 M a n a g e m e n t .   
 
 T h e   M F A   r e p r e s e n t a t i v e s   a t   t h e   m e e t i n g   w e r e   S t u a r t   K a s w e l l   ( M F A ) ,   K e n n e t h   
 
 K o p e l m a n   ( S i d l e y   A u s t i n   L L P ) ,   C h r i s   R a m s a y   ( C i t a d e l   L L C ) ,   L a u r a   H a r p e r   ( M F A ) ,   
 D e b b i e   C o l e m a n   ( C o n v e x i t y   C a p i t a l   M a n a g e m e n t ) ,   K i m   R o s m a n   ( H B K   C a p i t a l   
 M a n a g e m e n t ) ,   a n d   D a v i d   H o l m e s   ( K i n g   S t r e e t   C a p i t a l   M a n a g e m e n t ) .   
 
 T h e   F I N R A   r e p r e s e n t a t i v e s   a t   t h e   m e e t i n g   w e r e   G r a c e   V o g e l ,   M a r s h a l l   L e v i n s o n ,   
 
 K r i s   D a i l e y ,   M o h i t   D a y a l ,   a n d   A m r   E l - S a b b a g h .   
 
   
   
   
   
   
   
   
   
   
   
     
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
     
   
   
   
       
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
 
   
   l n t r o d u c t i o   
 •     D o d d - F r a n k   a d d e d     c u s t o m e r   p r o t e c t i o n     r u l e s   e n c o u r a g i n g   t r i - p a r t y   
 
 s e g r e g a t i o n   o f   O T C   d e r i v a t i v e s   i n i t i a l     m a r g i n   p o s t e d   t o   d e a l e r s -   a l s o   
 r e f l e c t e d     i n     t h e   f i n a l     B a s e i - I O S C O   m a r g i n     r e q u i r e m e n t s   
 
 @     S w a p   d e a l e r s   m a i n t a i n     l e g a l     c o n t r o l     o f ,     a n d     a   p e r f e c t e d   s e c u r i t y   i n t e r e s t   i n ,   
 
 t h e   t r i - p a r t y     a c c o u n t ~   r e f l e c t e d     i n     I S D A   f o r m     o f   A c c o u n t   C o n t r o l   A g r e e m e n t   
 
 @ I     S E C   p r o p o s e d     r u l e   t h a t   w o u l d     i m p o s e   a   1   0 0 ° / o     c a p i t a l     c h a r g e   o n     s w a p   
 
 0   
 
 d e a l e r s   f o r   t h e s e   a r r a n a     m e n t s   i s     u n n e c e s s a r y   
 T h i s   o   
 -   T r i - P a r t v   S e a r e a a t i o n .     G e n e r a l   
 - W h y   
 
 f o l l o w i n g     t o p i c s :   
 
 n t a t i o n     c o v e   
 
 t h   
 
 T r i - P a r t y   S e g r e g a t i o n   f o r   O T C     D e r i v a t i v e s   I n i t i a l   M a r g i n ?   
 
 S e g r e g a t i o n   o f   
 
 D e r i v a t i v e s   I n i t i a l   M a r g i n   
 
 -   T r i - 
 
 S e g r e g a t i o n   A r r a n g e m e n t s   G i v e   S B S D s   L e g a l     C o n t r o l   
 
 r e g a t i o n   
 
 G i v e   S B S D s   A c c e s s   t o     C o l l a t e r a l   
 
 
 -   P l e d g o r   A c c e s s   t o     S e g   
 
 l a t e r a l     i s     L i m i t e d 
 
 - P r o p o s e d   C a p i t a l   C   
 
 r e g a t e d     C u s t o m e r   I n i t i a l   M a r g i n     i s     U n n e c e s s a r y     1   
 
  T r i - P a r t y   S e g r e g a t i o n ,   G e n e r a l l y   
 
 ~   	   S e c t i o n   3 E     o f   t h e     ' 3 4   A c t ,     a d d e d   b y   D o d d - F r a n k ,   g i v e s   O T C   
 
 d e r i v a t i v e s   c u s t o m e r s   t h e   r i g h t   t o     r e q u i r e   s e g r e g a t i o n   o f   i n i t i a l   
 m a r g i n   w i t h     a   t h i r d - p a r t v   c u s t o d i a n   
 
 •   	   T r i - p a r t y   c u s t o d y   a n d     c o n t r o l   a r r a n g e m e n t s   a r e   c o m m o n l y   u s e d   a n d   
 
 r e l i e d     o n     i n     v a r i o u s   
 
 r e a     o f   t h e   f i n a n c i a l     m a r k e t s   
 
 " ' i s t e r e d     i   
 r t y     r e p o   
 
 n i e s   -   t o   p o s t   c o l l a t e r a l   f o r   v a r i o u s   t r a n s a c t i o n s   
 
 k e r - d e a l e r s   t o     p o s t   s e c u r i t i e s   a g a i n s t   c a s h   
 
 d e r i v a t i v e s   
 
 p o s t i n g     i n i t i a l   m a r g i n ,   t h e   t o p i c   o f   t h i s   
 
 ~   
 
 d   
 O T C   t r i   
 m e t h   
 w h i c h     i   
 
 r t y   s e g r e g a t i o n   a r r a n g e m e n t s   u s e   o p e r a t i o n a l   a n d     l e g a l   
 t h a t   a r e   s i m i   I     r   t o   t h o s e   u s e d     i n     t h e   t r i - p a r t y   r e p o   m a r k e t ,   
 
 l a r g e   a n d     s i a n i f i c a n t   m a r k e t   
 
 2   
 
 
  - P a r t y   S e g r e g a t i o n   f o r   O T C   D e r i v a t i v e s   I n i t i a l   
 
 W h y   U s e   
 M a r g i n ?   
 
 @     T r i - p a   
 i n   i t i a   I   
 
 s e g r e g a t i o n   p r o t e c t s   c u s t o m e r s   f r o m     r i s k   o f   l o s s   o f   t h e i r   
 r g i n   t o   a n     i n s o l v e n t   s e c u r i t y - b a s e d   s w a p   d e a l e r   ( S B S D )   
 m e r   d i r e c t l y   t o     S B S D   = c u s t o m e r   c r e d i t   
 
 - 
 
 l n i t i     !   m a r g i n     p o s t e d   
 e x p o s u r e   t o     S B S D   
 
 s e g r e g a t i o n   
 
 u 1 a     r e d u c e     c u s t o m e r   f l i g h t   f r o m     c r e d i t - 
 
 t h r e a t e n e d   S B S D s   
 
 G     K e y   p r i n c i p l e   o f   B a s e i - 1   
 p o s t e d     i n i t i a l     m a r g i n   b   
 p l e d g o r   i f   t h e   s e c u   
 
 0     f i n a l     m a r g i n   r e q u i r e m e n t s   i s   t h a t   
 b j e c t   t o   a r r a n g e m e n t s   t h a t   f u l l y   p r o t e c t   
 
 r t y   e n t e r s   b a n k r u p t c y   
 
 @     T r i - p a r t y   s e g r e g a t i o n     c c o m p l i s h e s   t h i s   i m p o r t a n t   c u s t o m e r   
 
 p r o t e c t i o n   g o a l   i n     a   w a y   t h a t   m a i n t a i n s   t h e   S B S D ' s   c o n t r o l   o f   a n d   
 l e g a l   a c c e s s   t o   t h e   a   
 
 3   
 
  T r i - P a r t y   S e g r e g a t i o n   o f   O T C     D e r i v a t i v e s   I n i t i a l   M a r g i n   
 
 •   	 
 
 I n     a n     O T C   d e r i v a t i v e s   t r i - p a r t y   a r r a n g e m e n t :   
 - 	 
 
 I n i t i a l     m a r g i n     i s     p o s t e d     b y     c u s t o m e r   a n d     m a i n t a i n e d     i n     a n     a c c o u n t   h e l d   
 b y   a   t h i r d - p a r t y   c u s t o d i a n     b a n k   f o r   t h e   b e n e f i t   o f   t h e   S B S D   
 
 -   A c c o u n t   i s   t y p i c a l l y   i n   
 
 n a m e   o f   c u s t o m e r   ( a s   P l e d g o r ) ,     w i t h     S B S D   a s   
 
 s e c u   r e a     p a r t y   
 
 B S D     h a s   a p e   
 u n a     r   A r t i c l e s   8   a n d   
 
 s e c u r i t y   i n t e r e s t   i n     t h e   a c c o u n t   a n d     c o l l a t e r a l   
 
 c c   
 
 l e d g e r   m a i n t a i n s   d a y - t o - d a y   r i g h t s   a n d     o b l i g a t i o n s   r e g a r d i n g   
 n g ,     s u b s t i t u t i n g     n d     r e c e i v i n g     b a c k   c o l l a t e r a l   f r o m   t h e   a c c o u n t   
 
 •   	   T h e   r i a h t   t o   t r i ~ p a r t y   s e g r e g a t i o n   u n d e r   S e c t i o n     3 E   c o v e r s   i n i t i a l   
 
 m a r g 1 n     o n l y   
 - 	   C o l l a t e r a l     c u s h i o n   f o r     B S D ' s   P o t e n t i a l     F u t u r e   E x p o s u r e   
 
 a r K - t o - m a r K e t   c o l i   
 
 I   i s     p o s t e d     d i r e c t l y   t o   t h e   S B S D   
 
 4   
 
 
  T r i - P a r t y   S e g r e g a t i o n   A r r a n g e m e n t s   G i v e   S B S D s     l e g a l   C o n t r o l   
 
 @     L e g a l   c o n t r o l     i s   e s t a b l i s h e d   b y   t h e   S B S D ' s   p o w e r   t o     i n s t r u c t   t h e   
 
 C u s t o d i a n   w i t h     r e s p e c t   t o   t h e   c o l l a t e r a l   w i t h o u t   f u r t h e r   c o n s e n t   b y   a   
 d e f a u l t i n g     P l e d g o r   
 
 @     T h e   S e c u r e d     P a r t y   
 t o   d e l i v e r   t o   t h e   c u   
 
 a s   t h e   p o w e r   u n d e r   a   t r i - p a r t y   a g r e e m e n t   
 " N o t i c e   o f   E x c l u s i v e   C o n t r o l "   { N O E C )   
 
 •   	   U p o n   
 
 i p t   o f   a   N O   
 
 ,   
 
 l e d g o r   h a s   n o     r i g h t   t o     c o n s e n t   t o   a n y   
 
 m o v e m     n t   o f   c o l l a t e r a l   i n     t h e   a c c o u n t ,     a n d   t h e   s e c u r i t i e s   
 i n t e r m e d i a r y   ( C u s t o d i a n )   i s     r e q u i r e d   t o     a c t   w i t h o u t   f u r t h e r   c o n s e n t   
 f r o m     P l e d g o r   
 
 5   
 
 
  T r i - P a r t y   S e g r e g a t i o n   A r r a n g e m e n t s   G i v e   S B S D s     l e g a l   C o n t r o l   
 
 G )     T r i - p a r t y   a g r e e m e n t s   a r e   s u b j e c t   t o     n e g o t i a t i o n ,     b u t   c e r t a i n   
 
 p r o v i s i o n s   a r e   s t a n d a   
 
 ~     B a s i c     r e v i s i o n     i   
 
 t r i - o a r t y   c u s t o d y   a g r e e m e n t   
 
 S e c u r i t i e s     i n t e r m e d i     r y     w i l l     c o m p l y   w i t h     a l l     e n t i t l e m e n t   o r d e r s   a n d     o t h e r   
 i n s t r u c t i o n s   o r i g i n a t e d     b y   S e c u r e d     P a r t y   w i t h     r e s p e c t   t o   t h e     c o l l a t e r a l     i n   
 a c c o r d a n c e   w i t h     t h e     N o t i c e   o f   E x c l u s i v e   C o n t r o l     p r o v i s i o n s   w i t h o u t   
 
 r   c o n s e n t   o f   P l e d g o   
 
 6   
 
 
  T r i - P a r t y   S e g r e g a t i o n   A r r a n g e m e n t s   G i v e   S B S D s   A c c e s s   t o   
 C o l l a t e r a l   
 •   	   K e y   t o   
 
 a n a l y s i s   i s   w h a t   h a p p e n s   i n     a   P l e d g o r   i n s o l v e n c y ,     t h e   s i t u a t i o n   w i t h   
 k   o f   l o s s   t o     t h   
 
 h i g h e s t   
 
 B S   
 u p o n     r a l e d g o r   i n s o l v e n c y   t o     d e l i v e r   a   N O E C   -   t y p i c a l l y   
 
 •   	   S B S D   h a s     i m m e d i a t e   
 
 w i t h     n o   v e r i f i c a t i o n     r e q u i   
 
 •   	   U p o n     r e c e i p t   o f   a   N O E C   a f t e r   P l e d g o r   i n s o l v e n c y ,     C u s t o d i a n   m u s t   r e f u s e   t o     h o n o r   
 
 a n y   i n s t r u c t i o n s   f r o m     P l e d g o r   
 
 •   	   F o l l o w i n g     d     l i v e r y   o f   t h     N O   
 
 ,   t h e     S B S D   c o n t r o l s   t h e     a c c o u   
 
 •   	   P l e d g o r   i n s o l v e n c y   s h o u l d     n o t   a f f e c t   o r   d e l a y   t h e     r i g h t   o f   t h e   S B S D   t o     d i r e c t   
 
 C u s t o d i a n   t o     d e l i v e r   c o l l a t e r a l   a s     i n s t r u c t e d   b y   t h e   S B S D ,   o r   t h e     r e q u i r e m e n t   o f   
 C u s t o d i a n   t o     d o   s o   
 -   C u s t o d i a n   a c t s   o n   
 
 a l f   o f   S B S   
 
 -   S a f e   h a r b o r   p r o t e c t i   
 
 u n a e r   B a n k r u p t c y   C o d e   f o r   c r e d i t o r s   
 
 r   b a n k r u p t c y   
 a   s t a y   
 
 ( i n     t h e   U S   a n d   o t h e r   j u r i s d i c t i o n s )   d o   n o t   t y p i c a l l y   
 
 s   a r e   t y p i c a l l y   r e g u l a t e d     e n t i t y   c o u n t e r p a r t i e s )   
 
 7   
 
 
  P l e d g o r   A c c e s s   t o   S e g r e g a t e d   C o l l a t e r a l   i s   l i m i t e d   
 
 •   	   U p o n   S B S D   d e f a u l t ,     P l e d g o r   m a y   h a v e   t h e   r i g h t   t o     d e l i v e r   a   n o t i c e   
 
 g i v i n g   i t   f u l l     a c c e s s   t o     t h e   c o l l a t e r a l   i n     t h e   a c c o u n t   
 -   N o t i     m u s t   i n c l u d e     c e r t i f i e d     s t a t e m e n t   t h a t   s w a p     a g r e e m e n t   h a s   
 
 b e e n     t e r m i n a t e d     d u e   t o     S B S D   d e f a u l t   
 
 i n     a n     i n s o l v e n c y   
 
 - 
 I f   P l e d g o r   a c c e s s   i s   
 m a y   b e   g i v e n   a   r i g   
 
 c o n t e s t   
 
 @ I   
 
 u l t ,     e v i d e n c e   o f   i n s o l v e n c y   i s   t y p i c a l l y     r e q u i r e d   
 
 f o r   n o n - i n s o l v e n c y   d e f a u l t s ,   t h e   S B S D   
 
 •   	   T h e s e   p l e d g o r   a c c e s s   r i g h t s   a r e   c o n s i s t e n t   w i t h   t h e   p u r p o s e   o f   
 
 S e c t i o n   3 E     o f   t h e   ' 3 4   A c t   a n d     p r e s e r v e   t h e   n e c e s s a r y   c o n t r o l   o f   t h e   
 a c c o u n t   b v   t h e   S B   
 
 8   
 
 
  S o o n . . . t o - b e - P u b l i s h e d   I S D A   F o r m   o f   A c c o u n t   C o n t r o l   
 A g r e e m e n t   
 
 o   	   A n     I S D A   w o r k i n g   g r o u p   c o m p r i s e d   o f   m a r k e t   l e a d i n g   s w a p   d e a l e r s ,   
 c u s t o d i a n s   a n d   b u y - s i d e   f i r m s ,     t o g e t h e r   w i t h   t h e i r   c o u n s e l ,     h a v e   
 a l m o     c o m p l e t e d   w o r k   o n     a   f o r m     o f   A c c o u n t   C o n t r o l   A g r e e m e n t   
 
 o   	   T h e   A c c o u n t   C o n t r o l   A g r e e m e n t   u s e s   a   m e n u - l i k e   a p p r o a c h ,   w i t h   
 a n n e x e s   a n d     s c h e d u l e s   p r o v i d i n g   t h e   p a r t i e s   w i t h     r i g h t s   t o   m a k e   
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 9   
 
 
  P r o p o s e d   C a p i t a l   C h a r g e   f o r   S e g r e g a t e d   C u s t o m e r   I n i t i a l   M a r g i n   
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 I n     a   s e g r e g a t e d   t r i ~ p a r t y   a r r a n g e m e n t   t h e   S B S D   h a s   l e g a l   a c c e s s   t o   
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 -   S e c u r e d     P a r t y   h a s   a   p e r f e c t e d   s e c u r i t y   i n t e r e s t   i n     t h e   a c c o u n t   a n d   
 
 c o l l a t e r a l     u n d e r   t h e     U C C   
 
 e     A n     a d d i t i o n a l   c a p i t a l   c h a r g e   i s     u n n e c e s s a r y   f o r   i n i t i a l     m a r g i n     h e l d   
 
 u n d e r   t h     S B S D ' s   c o n t r o l   
 
 ®     A n     a d d i t i o n a l   c a p i t a l   c h a r g e   i s   a l s o   c o n t r a r y   t o   t h e   c u s t o m e r   
 
 p r o t e c t i o n   g o a l   o f   S e c t i o n   3 E   o f   t h e   ' 3 4   A c t   a d d e d   b y   D o d d - F r a n k ,   a   
 v i e w   s h     r e d     b y   a   w i d e   r a n g e   o f   m a r k e t   p a r t i c i p a n t s   ( s e e   c o m m e n t   
 l e t t e r s   f r o m     I S D A ,     S I F M A   a n d     I n v e s t m e n t   C o m p a n y   I n s t i t u t e )   
 
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