SFIG Advocates on Swaps Margin Rule

This week, SFIG staff and members met with Congressional staff to share our members' interest in seeking relief from bilateral margin posting requirements for swaps entered into with legacy special purpose vehicles (SPVs). During the meeting, we discussed our concerns regarding market impact and downgrade risk for legacy deals if permanent relief from margin posting requirements is not granted.

This discussion follows multiple meetings that SFIG has had with both the Commodity Futures Trading Commission (CFTC) and prudential regulators. Earlier this year, the CFTC issued a time-limited no-action letter on February 13th which postponed enforcement until September 1st. The Federal Reserve Board and the Office of the Comptroller of the Currency issued guidance on February 23rd explaining how supervisors should examine compliance with minimum variation margin requirements for non-cleared swaps and non-cleared security based swaps.

If you would like to join SFIG's Derivatives Task Force, please contact Alyssa.Acevedo@sfindustry.org.

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