CFTC Makes QFC-Related Amendments to Swap Margin Rules

The CFTC adopted amendments to its uncleared swap margin requirements so as to comply with the stay-related rules applicable to "qualified financial contracts" ("QFCs").

The amendments clarify that (i) swap agreements are not excluded from the CFTC Margin Rule definition of "eligible master netting agreement" based on their compliance with the QFC rules and (ii) any legacy uncleared swap that is out of scope for the CFTC swap margin rules will not become in-scope as a result of amendments made to comply with the QFC rules. The changes are consistent with those made by the U.S. "prudential regulators" (as covered here).

The amendments will become effective 30 days after publication in the Federal Register.

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