Regulatory Alerts2020-07-01 | 2020-14097Margin and Capital Requirements for Covered Swap Entities
The OCC, Federal Reserve Board, FDIC, FCA, and FHFA have adopted a final rule amending the Swap Margin Rule to update capital and margin requirements for prudentially regulated swap entities. The amendment permits legacy swaps to retain their exempt status when amended to replace discontinued interbank offered rates or undergo technical adjustments, while modifying initial margin collection for non-cleared swaps between affiliates. It also introduces an extended compliance date for smaller counterparties, clarifies trading documentation timing, and preserves legacy swap status in the event of a no-deal Brexit.
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