Interim Pilot Program on Margin Requirements for Credit Default Swaps

FINRA RN 11-31

July 15, 2011

FINRA published a regulatory notice to inform firms of its recently established pilot program on margin requirements for credit default swap transactions and to address the approval of margin methodologies used by clearing agencies or derivative clearing organizations (DCOs) for the purpose of the rule, FINRA Rule 4240. Currently, FINRA has approved the use of the margin methodology of the central counterparty clearing facilities at the CME; the notice states that FINRA will consider the use of other counterparty clearing services and will announce the approval of any such services in a regulatory notice.

Cross References

FINRA Rule 4240

SEC Release No. 34-59955 (approval of rule change)

FINRA RN 09-30 (credit default swaps)