From: Riley, John <JRiley@CFTC.

gov>
Sent: Monday, October 26, 2009 3: 18 PM
To: Ogilvie, Clark <Clark.Ogilvie@mai1.house.gov>
Cc: Leslie, Douglass <dleslie@CFTC.gov>; Harper, W. Graham
<WHarper@CFTC.gov>; Berkovitz, Dan M <DBerkovitz@CFTC.gov>; Arbit,
Terry <tarbit@CFTC.gov>
Subject: CFTC Staff technical assistance
Attach: Technical Assistance for House Agriculture and Financial Services Committee-
Group 1 10.26.09 pm.docx

Clark -

As you proceed towards floor action, I am providing you CFTC staff technical assistance for your use.
These provisions, if enacted, would accomplish the following:

1. Offer a more limited clearing exception that would not be available to financial firms (but allow
commercial firms that are not required to clear to nevertheless have their swaps cleared if they choose to do so).

2. Require swaps that would otherwise be cleared (i.e., are clearable) but need not be cleared due to the
nature of the parties (see #1above) to be traded and executed on an ASEF if it is available.

3. Allow for use of non-cash collateral and other credit or financing arrangements if Congress wants to
permit that for any categories of participants.

4. Provide a modified ASEF Core Principle reo position limits to address concerns about the applicability
of contract-market style language to different types of ASEFs.

5. Propose limitations on the exclusions for FX swaps and forwards that should not interfere with the
appropriate use of such instruments, but that will avoid evasion of the requirements of this legislation, will avoid
undermining the retail forex provisions currently in the CEA, and will require transparency in such transactions.

This document is also being shared with the staff of the Committee on Financial Services.

Thanks for everything. Let me know if we can be of assistance.

Riley

John P. Riley
Director of Legislative Affairs
Office ofthe Chairman
u.s. Connnodity Futures Trading Connnission
115521 51 St., NW
Washington, DC 20581
(202) 418-5383
JRi1ey@CFTC.gov

CFTC-CREW-0624