CFTC approved a proposal to delay the compliance date of September 01, 2021 to September 01, 2022 for the initial margin requirements for smaller entities under the CFTC Margin Rule. The requirements in this proposal apply to uncleared swaps for swap dealers and major swap participants for which there is no prudential regulator. Comments on the proposal must be received on or before 60 days after the date of publication in the Federal Register.
In April 2020, CFTC had published a final rule to extend the compliance date of September 01, 2020 to September 01, 2021, for a portion of what was to be the final phase consisting of entities with smaller average daily aggregate notional amounts of swaps and certain other financial products (Smaller Portfolio Group). The compliance date was extended to reduce the potential market disruption that could result from a large number of entities coming into the scope of compliance on September 01, 2020. Subsequently, in May 2020, to mitigate the operational challenges faced due to the COVID-19 pandemic, CFTC adopted an interim final rule that extended the September 01, 2020 compliance date for certain entities by one year to September 01, 2021. To avoid market disruption due to a large number of entities being required to comply by September 01, 2021 under the revised compliance schedule, CFTC had issued the current proposal to further delay the compliance date for the Smaller Portfolio Group from September 01, 2021 to September 01, 2022.
Comment Due Date: FR+60 Days
Keywords: Americas, US, Banking, Securities, Swaps, Derivatives, Initial Margin, Compliance Date, CFTC
Previous ArticleBoE Announces Decisions from June Financial Policy Committee Meeting
The UK authorities have published consultations with respect to the Basel requirements for banks. The Prudential Regulation Authority (PRA) published the consultation paper CP16/22 on rules for the implementation of Basel 3.1 standards.
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.
The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.