Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants
The Commodity Futures Trading Commission (``Commission'' or ``CFTC'') is proposing regulations to implement section 4s(e) of the Commodity Exchange Act (``CEA''), as added by section 731 of the Dodd- Frank Wall Street Reform and Consumer Protection Act (``Dodd-Frank Act''). This provision requires the Commission to adopt initial and variation margin requirements for certain swap dealers (``SDs'') and major swap participants (``MSPs''). The proposed rules would establish initial and variation margin requirements for SDs and MSPs but would not require SDs and MSPs to collect margin from non-financial end users. In this release, the Commission is also issuing an Advance Notice of Proposed Rulemaking requesting public comment on the cross- border application of such margin requirements. The Commission is not proposing rules on this topic at this time. It is seeking public comment on several potential alternative approaches.