XVlll-O0001

From:

Sent:

To:

Subject:

Attach:

chualeeming@gic, com. sg

Monday, September 20, 2010 11:49 AM

OTCDefinitions <OTCDefinitions@CFTC.gov>; RealTimeReporting

<RealTimeReporting@CFTC.gov>

Definitions; Real Time Reporting

DF Comments (CFTC) 200910.pdf

Please see attached.

(See attached file: DF Comments (CFTC) 200910.pdf)

Thank you.

This email from the Government of Singapore Investment Corporation may contain confidential information. Unauthorised

communication and disclosure of any information in this email is prohibited. If you are not the intended recipient, please

notify the sender and delete this email immediately.
September 20, 2010

David A Stawick

Secretary

Commodity Futures Trading Commission

Dear Mr Stawick

Re: Comments the Dodd-Frank Act-(a) Definitions; (b) Real Time Reporting

Thank you for the opportunity to give our comments.

We support the reforms under the Dodd-Frank Act. We believe these reforms are good for

the overall financial system, and a positive step towards better financial supewision, greater

price transparency and reduction of systemic risk.

We have a few specific comments whic!~ we hope will receive your due consideratlon.

(a) .Definitions Maior Swap Participant; Maior Secur!ty-based Swap Participant

At the outseti we note that the objective of the concepts of Major Swap Pa~icipant (MSP)

and Major Security-based Swap Participant (MSSP) is for SEC and CFTC to have

oversight over systemically importan~ firms with huge exposures and ~)otentia!ly

significant impact on the US financial system. The treatment of these two concepts

should remain consistent with this objective,

First and foremost, we believe long term financial investors should not be regulated as

MSPs or MSSPs. Instead regulation of MSPs/MSSPs should target intermediary-type

entities. Regulating long term financial investors increases their cost of operations and

could discourage participation in the US market. Further such investors are required to

repor~ trading information; we respectfully submit that this requirement is suffqcient and

that there is no compelling necessity to regulate them as MSPs/MSSPs.

Secondly, as regards defining the "substantial position" threshold to determine who wil!

be MSPslMSSPs, the legislation envisages defining the phrase to enable effective

monitoring and supervision of systemically important entities. In light of this. we submit

that leverage should be the determining factor in defining the "substantial position"

threshold. Alternatively, any definition by reference to absolute stze of positions should

take into account the asset base.

Finally, with respect to capital requirements applicable to investment managers who are

treated as MSPs/MSSPs these should be based on the asset base under management

and not the investment manager’s own capital.
(b) Real Time Reportin,q

We support the position taken in the Act that trade information will be made available to

the public only in aggregate form and will not identify specific participants. This principle

should apply to all public disclosures of trade information.

Thank you once again for this opportunity to give our comments.

Sincerely,

Lee Ming Chua

General Counsel