A CFTC proposal to extend the implementation date of initial margin requirements for 2020 and 2021 was published in the Federal Register. Comments must be submitted by December 23, 2019.
As previously covered, the CFTC unanimously approved a proposal to extend the "Phase Five" implementation date of the swaps initial margin requirements for firms with an aggregate average notional amount of between $8 billion and $50 billion to September 1, 2021. The proposal follows a similar proposal by the U.S. prudential regulators, and each follows a BCBS-IOSCO statement (see here and here). The current proposal also would make technical corrections to other aspects of Regulation 23.161.
The CFTC voted to propose amending its uncleared swap margin regulations to (i) extend the implementation date of initial margin requirements, and (ii) exempt certain transactions from uncleared margin requirements.
The FDIC proposed amending its rules governing margin requirements for uncleared swaps and security-based swaps.
The Basel Committee on Banking Supervision and IOSCO agreed to a one-year extension of the implementation of derivatives initial margin requirements.
The CFTC Division of Swap Dealer and Intermediary Oversight clarified that "Phase Five" initial margin documentation requirements will not apply to trading relationships where initial margin requirements have not gone above the $50 million threshold.
On June 21, 2019, the SEC adopted new rules and rule amendments that establish security-based swap capital, margin and segregation requirements.
The CFTC Division of Clearing and Risk provided exemptive relief to three international financial institutions from the swap clearing requirement.
The CFTC issued no-action relief that exempts certain swap dealers from "Final Margin Rule" requirements when entering into uncleared swaps.
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