The CFTC voted to re-propose a rule that would require swap dealers and major swap participants not subject to prudential supervision to exchange initial margin and variation margin with counterparties for swaps not cleared by a central counterparty. The CFTC’s rule closely aligns with and was developed in conjunction with the prudential financial regulators’ recently proposed rule.
If adopted, the rule would set margin requirements based on the risk associated with the counterparty, and would apply when the counterparty to the swap is another swap dealer, major swap participant or financial end user. The rule would not apply margin requirements to non-financial end users, the CFTC said.
View a fact sheet on the proposal.