Recommendations for new Chairman would strengthen derivatives markets and drive economic growth
Washington, D.C. — MFA delivered a policy roadmap in a letter to Chairman Michael Selig of the Commodity Futures Trading Commission (CFTC) with recommendations intended to promote capital formation and improve market efficiencies. The recommendations align with the Administration’s calls to review regulations that unnecessarily burden industry and build on efforts to rightsize regulatory oversight of sophisticated market participants.
“Duplicative and outdated regulation raises costs for investors and slows economic growth,” said Bryan Corbett, MFA President and CEO. “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.”
MFA’s specific recommendations for the CFTC include:
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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 robust SEC oversight already applies. This would build on existing CFTC no-action relief.
- 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.
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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.
Read the full letter here.
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About the global alternative asset management industry
The global alternative asset management industry — including hedge funds, private credit funds, and hybrid funds — serves thousands of public and private pension funds, charitable endowments, foundations, and other global institutional investors. The industry provides portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets throughout the economic cycle.
About MFA
Managed Funds Association (MFA), based in Washington, D.C., New York City, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest it, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 180 fund manager members, including traditional hedge funds, private credit funds, and hybrid funds, that employ a diverse set of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors diversify their investments, manage risk, and generate attractive returns throughout the economic cycle.
