CFTC published, in the Federal Register, amendment to the comparability determination for Japan on margin requirements for uncleared swaps for swap dealers and major swap participants of CFTC. The amendment to the Japan Determination is effective April 01, 2019.
CFTC unanimously approved an amended the comparability determination that would extend the substituted compliance permitted for Japan’s margin requirements for uncleared swaps when compared to the uncleared swap margin provisions of Title VII of the Dodd-Frank Act and CFTC regulations. This amends the determination for Japan by making a positive determination of comparability with respect to the scope of entities subject to margin requirements and making a positive determination of comparability with respect to the treatment of inter-affiliate transactions. All other findings and determinations contained in the Japan Determination remain unchanged and in full force and effect. Additionally, CFTC published statements of CFTC Chairman J. Christopher Giancarlo, Commissioner Brian Quintenz, and Commissioner Dan M. Berkovitz on the comparability determination for Japan.
Substituted compliance describes the circumstances where CFTC would permit swap dealers or major swap participants subject to the rules of a foreign jurisdiction, but whose swap activities bring them within the scope of certain CFTC regulations, to use compliance with regulations in the foreign jurisdiction as a substitute for compliance with the relevant CFTC regulations. This approach builds on the CFTC’s long-standing policy of recognizing comparable regulatory regimes based on international coordination and comity principles with respect to cross-border activities involving futures and options. In accordance with the CFTC policy framework described in its "Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants – Cross-Border Application," which was announced on May 24, 2016, the comparability determination is part of substituted compliance with respect to CFTC regulations applicable to swaps activities outside the U.S. The approval of CFTC also reflects a collaborative effort with authorities and market participants from Japan. Working with authorities in Japan, CFTC has extended the 2016 determination to two additional requirements.
Related Link: Federal Register Notice
Keywords: Americas, Asia Pacific, US, Japan, Banking, Securities, Comparability Determination, Margin Requirements, Uncleared Swaps, Equivalence Regime, CFTC
Previous ArticleSEC Proposes to Amend Customer Margin Rules for Security Futures
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.
ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.
The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.
OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.
EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.