External Meetings: meeting with Principal Life Insurance Company

Representatives of life insurance company discussed issues raised in the August 16, 2011 comment letter from Principal Life Insurance Company, especially in support of expanding the types of collateral acceptable for variation margin (VM). Under the proposed rule for uncleared swaps, VM is limited to cash and treasuries, and the representatives from Principal support including high quality, readily marketable securities as VM, as is current practice today for OTC derivatives.