ABA, Financial Trade Groups Call for Changes to Margin Rules

The American Bankers Association joined several financial trade organizations in a letter to the prudential regulators earlier this week calling on them to modify the margin rules for non-cleared swaps and security-based swaps to better align them with international standards. The groups specifically sought an exception from initial margin requirements for swaps and security-based swaps between affiliates.

The groups noted that the Commodity Futures Trading Commission—along with regulatory authorities around the globe—already provide such an exception. This divergence was noted in the 2017 Treasury report on the U.S. regulatory framework, along with a recommendation that the prudential regulators consider providing an exemption like the one offered by the CFTC and the other foreign regulatory agencies.