Regulatory Alerts2020-11-09 | 2020-23473Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants
The Commodity Futures Trading Commission (CFTC) issued a final rule amending the CFTC Margin Rule to extend the initial margin compliance deadline for the "Smaller Portfolio Group" of swap dealers and major swap participants. The rule delays the compliance date for entities with smaller average daily aggregate notional amounts from September 1, 2021, to September 1, 2022, to prevent market disruption from the simultaneous onboarding of approximately 670 entities and 7,500 trading relationships. This one-year extension aligns with the revised 2020 BCBS/IOSCO Margin Framework and addresses operational challenges exacerbated by the COVID-19 pandemic, ensuring orderly preparation for bilateral margin exchange.
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