Regulatory Alerts2020-09-23 | 2020-18303Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants
The Commodity Futures Trading Commission proposes amendments to the margin requirements for uncleared swaps applicable to swap dealers and major swap participants without a prudential regulator. The proposal seeks to align the CFTC Margin Rule with the BCBS/IOSCO Framework by revising the calculation method for determining initial margin applicability and adjusting compliance timing for entities with average aggregate notional amounts exceeding $8 billion. Additionally, the Commission proposes allowing these entities to use the risk-based model calculation of a counterparty's initial margin to determine collection amounts and threshold exceedances.
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