SFIG Meets with CFTC on Swaps Margin Rules

Earlier today, July 13th, SFIG staff and members spoke with staff in the Commodity Futures Trading Commission's (CFTC) Division of Swap Dealer & Intermediary Oversight.

SFIG requested the meeting in connection with a no-action request that was delivered on Tuesday, July 11th to the offices of Acting Chairman Giancarlo and Commissioner Bowen, which reiterates our members' interest in seeking relief for legacy SPV swaps on posting requirements for bilateral margin that will be enforced beginning on September 1st. During this meeting, SFIG staff and members continued to share with the CFTC concerns regarding the negative impact to the market and downgrade risk for legacy special purpose vehicles if relief from margin posting requirements is not granted. This discussion follows meetings that SFIG had earlier this year with both the 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, and 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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