CFTC Proposes Rule for Margin on Cross-Border Uncleared Swaps

The Commodity Futures Trading Commission today issued a proposal on when margin requirements would apply to uncleared swap transactions in a cross-border context.

The CFTC describes the proposed approach as a hybrid of the entity- and transaction-level approaches found in the agency’s advance notice of proposed rulemaking last fall. When finalized, the rule will apply to CFTC-registered swap dealers and major swap participants that do not have a prudential regulator, while the prudential regulators’ proposal describing margin requirements for uncleared swaps contains its own cross-border framework.

ABA’s new Center for Bank Derivatives Policy expects to comment on the proposal; comments are due 60 days after publication in the Federal Register. For more information, or to participate in ABA’s advocacy on this issue, contact ABA’s Jason Shafer.

Share.

About Author

Evan Sparks

Evan Sparks is editor-in-chief of the ABA Banking Journal and vice president for publications at the American Bankers Association.