Regulatory Alerts2016-05-31 | 2016-12612Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants-Cross-Border Application of the Margin Requirements
The Commodity Futures Trading Commission adopted final rules establishing the cross-border application of initial and variation margin requirements for uncleared swaps involving swap dealers and major swap participants. The framework permits covered swap entities to satisfy U.S. margin obligations through substituted compliance with comparable foreign regulations, subject to specific exclusions and comparability determinations. These measures aim to mitigate systemic risk to the U.S. financial system while addressing the complexities of global swap markets and reducing regulatory conflicts for international market participants.
Share