July 03, 2019

SEC is proposing amendments to regulations that establish minimum customer margin requirements for security futures. The proposed amendments would lower the margin requirement for an unhedged security futures position from 20% to 15% and would lead to certain revisions to the margin offset table, consistent with the proposed reduction in margin. The proposal would be a joint CFTC-SEC proposal, if CFTC votes in favor of proposal. CFTC has scheduled its vote for July 11, 2019. Should the CFTC vote to propose the release, it will be published in the Federal Register. The public comment period will remain open for 30 days following publication in the Federal Register.

CFTC and SEC have joint rulemaking authority regarding margin requirements for security futures. In 2002, CFTC and SEC adopted rules establishing margin requirements for unhedged security futures products at 20%. In light of the lower margin requirements that have been established for comparable financial products and the resulting asymmetry, SEC has determined that it is appropriate to re-examine the minimum margin required for security futures.

 

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Comment Due Date: FR+30 days

Keywords: Americas, US, Banking, Securities, Margin Rules, Margin Requirements, Margin Offset Table, Security Futures, CFTC, SEC

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