Featured Product

    CFTC Rule on Segregating Assets Held as Collateral in Uncleared Swaps

    April 03, 2019

    CFTC approved amendments to Regulations 23.700 through 23.704, which govern the segregation of assets held as collateral in uncleared swap transactions. The amendments will become effective from May 03, 2019.

    The final amendments require that a swap dealer’s (SD) or major swap participant’s (MSP) counterparty be notified of its right to require segregation at the beginning of the swap trading relationship rather than prior to each swap transaction or no less than annually. The final amendments also permit the notification to be provided to an appropriate person at the counterparty who can evaluate and act on it instead of specifying the job title of the person. Additionally, the final amendments allow the parties to negotiate and agree to the terms pursuant to which margin will be segregated and to negotiate and agree as to the types of investments permitted for segregated margin. Finally, the final amendments eliminate the requirement to identify in advance the custodian who will hold segregated margin and permitting the parties to make that selection if the counterparty elects to segregate.

    The final rule originated as proposal from the Project KISS initiative, which is intended to simplify and reduce burden by revisiting the rules based on implementation experience and public comment. By reducing the unnecessary complexity and prescriptiveness of these rules, CFTC is providing additional flexibility for market participants, without reducing the effectiveness of its rules.

     

    Related Link: Federal Register Notice

    Effective Date: May 03, 2019

    Keywords: Americas, US, Banking, Securities, Uncleared Swaps, Major Swap Participant, Swap Dealer, Project KISS, CFTC

    Related Articles
    News

    PRA Consults on Implementation of Certain Provisions of CRD5

    PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).

    July 31, 2020 WebPage Regulatory News
    News

    EIOPA Report Identifies Key Financial Stability Risks for Insurers

    EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Publishes Risk Dashboard for First Quarter of 2020

    EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Issues Updates on Stress Test Exercise for Banks in EU

    EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.

    July 30, 2020 WebPage Regulatory News
    News

    PRA Proposes Guidance Related to Matching Adjustment under Solvency II

    PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.

    July 30, 2020 WebPage Regulatory News
    News

    MAS Issues Guidance on Dividend Distributions by Banks

    MAS published a statement guidance on dividend distribution by banks.

    July 30, 2020 WebPage Regulatory News
    News

    APRA Updates Guidance on Capital Management for Banks

    APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.

    July 29, 2020 WebPage Regulatory News
    News

    FSB Report Reviews Macro-Prudential Framework and Tools in Germany

    FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.

    July 29, 2020 WebPage Regulatory News
    News

    EBA Urges Firms to Finalize Preparations for End of Brexit Transition

    EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.

    July 29, 2020 WebPage Regulatory News
    News

    SRB on Operational Continuity in Resolution and FMI Contingency Plans

    SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.

    July 29, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5606