Advocacy Archive


CFTC Media Alert


US Regulatory Committee Memo: CFTC Open Meeting – DFA Rulemaking

November 29, 2010
President's Working Group Report on Money Market Fund Reform
Comment Letter Submitted to the Securities and Exchange Commission (Updated January 10, 2011)

The second phase of Money Market Fund reform is continuing in Washington, with the most debated proposal being the consideration of eliminating $1 stable Net Asset Value and requiring all MMFs to report fluctuating daily NAVs (Floating NAVs). In July of this year, NACT joined with other finance associations (including FEI and AFP) and other Corporations (including NACT members FMC, PG&E and Safeway) in adding its name to a letter from the U.S. Chamber of Commerce to the SEC and Treasury Dept. which opposed the Floating NAV proposal. Since that time, we have continued to be an active participant in a U.S. Chamber�led task force on this matter, and have coordinated dialogue as well with the Investment Company Institute (ICI), which represents the large mutual fund and investment management companies.

On November 3rd, the SEC issued a request for comment letter concerning a report from the President's Working Group (PWG) on Financial Markets issued October 21st, which outlined several alternatives for further MMF reform including conversion to Floating NAV. The SEC request for comment letter with a link to the PWG report is posted on the NACT website, along with a draft updated response from the U.S. Chamber task force and ICI. The comment period extends until January 10, 2011.

The NACT continues to oppose the Floating NAV proposal on the concern that it will substantially decrease the capacity of the MMF industry, and thereby impact the important role this industry has provided in purchasing commercial paper issued by public corporations. Many of our members are active commercial paper issuers, and we urge you to consider adding your corporate name directly as a signatory to the attached response letter and joining a developing coalition on this issue. The contact information for Alice Joe at the U.S. Chamber of Commerce is shown below, and the NACT will be happy to assist any interested companies as well.

Alice Joe
Senior Director, Center for Capital Markets Competitiveness, U.S. Chamber of Commerce
Office: 202-463-5340; Email:

Please join us in Washington on Tuesday, September 21st, for an event to examine the issues confronting market participants as key provisions, including the derivatives title, of the Dodd-Frank Wall Street Reform and Consumer Protection Act are implemented. This half-day event will include a keynote address by Commodity Futures Trading Commission (CFTC), Chairman Gary Gensler and panel discussions.

Confirmed speakers include:

  • The Honorable Gary Gensler, Chairman, Commodity Futures Trading Commission
  • Mitch Bleske, Senior Vice President, Chief Investment Officer and Treasury Manager, Trustmark Corporation
  • Mike Bontrager, Founder and Managing Principal, Chatham Financial
  • Tammy Evans, Director of Global Funding, Investments and Foreign Exchange, IBM
  • Christine McCarthy, Executive Vice President of Corporate Real Estate, Sourcing, Alliances and Treasurer, The Walt Disney Company

Members of the National Association of Corporate Treasurers will receive a special discounted registration fee of $25 for this conference. Conference check-in will begin at 9:00 a.m. with the program following from 9:30 a.m. to 12:30 p.m.

For more information please review the complete invitation.

NACT and U.S. Chamber of Commerce Webinar: Derivatives Regulatory Reform Key End-User Issues For Implementation, was held on August 10, 2010. To review session information, please click here. To review session PowerPoint, please click here.

Advocacy Update — Withdrawal of exemption from margining in derivatives legislation (Posted on 7/8/2010)

The Dodd-Frank Wall Street Reform and Consumer Protection Act has been reported out by the conference committee and awaits final action when Congress returns on July 12th from its Independence Day recess. As cited in a press release from the International Swaps and Derivatives Association and in an OpEd in the Wall Street Journal, a last-minute change in the bill removed what had been a clear exemption so that end users would not have to post daily margin on the mark-to-market position of their derivatives portfolios. The Business Roundtable estimated this would require non-financial BRT member companies to hold aside on average $269 million of cash or committed credit capacity. ISDA puts the number at $1 trillion across the U.S. economy.

We urge you to contact as soon as possible by phone or e-mail Members of Congress on behalf of your company and ask them to adopt a legislative fix for this problem.

Please contact NACT Chairman Tom Deas — — with questions.

Advocacy Update: Preliminary Analysis of the House-Senate Conference Bill on OTC Derivatives (Posted on 6/28/2010)

Advocacy Update: Derivatives Regulation and Money Market Mutual Funds' Net Asset Value (6/21/2010)

Dear NACT Member,

The two issues on which NACT has been most active will be finalized in Washington in the very near term. Here is how you can get involved.

NACT has joined with the U.S. Chamber of Commerce, the National Association of Manufacturers, the Business Roundtable, along with many other organizations and individual companies to urge sensible regulations that preserve our cost-effective access to derivatives. Attached is a letter on derivatives NACT has signed along with the other organizations. With the short time remaining, the Coalition for Derivatives End-Users has decided it would be most productive if you could contact as soon as possible by phone or e-mail Members of Congress on behalf of your company to echo points in the derivatives letter. There just is not enough time for the Coalition to collect companies' signatures on the letter. We have included a list of House and Senate conferees working on the final legislation. The contact at the U.S. Chamber of Commerce's Center for Capital Markets Competitiveness with the latest news on derivatives legislation is:

Ryan McKee — 202-463-5887 —

NACT has also signed onto a letter urging that money market mutual funds continue to maintain a fixed dollar-a-share net asset value (Link full sentence to Joint Letter Opposing Floating NAV_Draft_6 15 10 v2). The U.S. Chamber of Commerce's Center for Capital Markets Competitiveness is collecting signatures from individual companies in addition to the organizations that have already signed. The person you should contact to sign up your company is:

Jonathan Jachym — 202-463-3119 —

This information together with the latest updates will also be available in the Members Only section of the NACT web site at

The following NACT Executive Committee members are available to help with any of your questions:

Derivatives — Tom Deas —
MMMF Fixed NAV — Brad Fox — 925-467-3352 —

Recent Articles:

Derivatives Reform (Posted 5/18/10)
Derivatives reform legislation is moving to a vote in the Senate soon. Here are two updates on why getting an effective end-user exemption is important to us.

The Coalition for Derivatives End-Users held a Conference Call on Monday, February 22nd to update companies on the status of financial regulatory reform legislation in the Senate. Below are a few documents that came from the call:

Invitation to Coalition for Derivatives End-Users Sponsored Webinar

Coalition for Derivatives End-Users Sponsored Webinar PowerPoint

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