Federal Register: Prudential Regulators Propose Amendments to Swap Margin Rules

U.S. prudential regulators proposed rule amendments governing margin requirements for uncleared swaps and security-based swaps. The proposed rule amendments were published in the Federal Register. Comments on the proposal must be submitted by December 9, 2019.

As previously covered, the proposal would make five substantive changes to the margin rules: (i) removal of inter-affiliate initial margin, (ii) amendments to permit changes to "legacy" swaps relating to benchmarks, (iii) extension of the compliance period for initial margin, (iv) permission of non-material amendments to "legacy" transactions and (v) clarification regarding documentation requirements when initial margin is not exchanged due to the $50 million threshold.