SEC and CFTC Request Comment on Proposed Reduction in Margin Requirement for Security Futures

The SEC and CFTC requested comment on a joint proposal to reduce the margin requirement for unhedged security futures positions and to align the margin offset table for security futures with the reduced margin requirements. The SEC had already voted to propose the rule change; the proposal was published after the CFTC voted to propose the rules at an open meeting on July 11, 2019.

As previously covered, the proposal would lower the minimum margin requirement from 20 percent to 15 percent of the market value for each security future. Comments must be submitted within 30 days following publication of the proposal in the Federal Register.