US Agencies Approve Amendments to the Swap Margin Rule
Five US Agencies approved final amendments to swap margin requirements. These amendments conform with the recent rule changes that impose new restrictions on certain qualified financial contracts of systemically important banking organizations (QFC Rules). The five US agencies are Farm Credit Administration, FDIC, FED, FHFA, and OCC. The final rule will be effective from November 09, 2018.
Under the amendments, legacy swaps entered into before the applicable compliance date will not become subject to the margin requirements if they are amended solely to comply with the requirements of the QFC Rules. The amendments harmonize the definition of "Eligible Master Netting Agreement" in the swap margin rule with recent changes to the definition of "Qualifying Master Netting Agreement" in the respective capital and liquidity regulations of FED, FDIC, and OCC by recognizing the restrictions that were adopted by these agencies with respect to the QFC Rules.
US Agencies issued the swap margin rule in November 2015 and established minimum margin requirements for swaps and security-based swaps that are not cleared through a clearinghouse. The margin requirements are designed to help ensure the safety and soundness of swap entities and reduce risks to the stability of the financial system associated with non-cleared swaps activity.
Related Links
Effective Date: November 09, 2018
Keywords: Americas, US, Banking, Securities, Swap Margin Rule, Qualified Financial Contracts, Master Netting Agreement, US Agencies
Previous Article
Beverly Hirtle of New York FED on Supervisory Stress Testing DesignRelated Articles
|
News
BCBS Consults on Revised Disclosures for Market Risk FrameworkBCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.
November 14, 2019
WebPage
Regulatory News
|
|
News
FSB Examines Implementation of Resolution Regimes in Financial SectorFSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions and sets out plans for further work.
November 14, 2019
WebPage
Regulatory News
|
|
News
PRA Publishes Final Policy on Maintenance of TMTP Under Solvency IIPRA published the policy statement (PS25/19) that contains the final supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTPs) under Solvency II.
November 14, 2019
WebPage
Regulatory News
|
|
News
BCBS Consults on Disclosure Templates of Sovereign Exposures of BanksBCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.
November 14, 2019
WebPage
Regulatory News
|
|
News
IAIS Adopts ComFrame, ICS, and Holistic Framework for Systemic RiskIAIS adopted a comprehensive set of reforms—Common Framework (ComFrame), Insurance Capital Standard (ICS) Version 2.0, and Holistic Framework for Systemic Risk—that will enable effective cross-border supervision of insurance groups and contribute to global financial stability.
November 14, 2019
WebPage
Regulatory News
|
|
News
PRA Publishes Templates for Statistical Disclosures Under Solvency IIPRA published templates for statistical disclosures, as required under Article 31(2) of the Solvency II Directive.
November 14, 2019
WebPage
Regulatory News
|
|
News
FASB Proposes Improvements to Derivatives and Hedging StandardFASB proposed an Accounting Standards Update, on codification improvements to hedge accounting under Topic 815, to clarify certain sections of the 2017 hedge accounting standard (Update 2017-12).
November 13, 2019
WebPage
Regulatory News
|
|
News
FASB Approves Guidance to Assist in Transition to New Reference RatesFASB approved an Accounting Standards Update (Topic 848) to provide temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the reference rate reform on financial reporting.
November 13, 2019
WebPage
Regulatory News
|
|
News
BIS and MAS Launch Innovation Hub in SingaporeBIS and MAS launched the BIS Innovation Hub Center in Singapore.
November 13, 2019
WebPage
Regulatory News
|
|
News
MAS and Industry to Create Framework for Adoption of Responsible AIDAMAS announced that it is working with financial industry partners to create a framework for financial institutions to promote the responsible adoption of Artificial Intelligence and Data Analytics (AIDA).
November 13, 2019
WebPage
Regulatory News
|
