Featured Product

    CFTC Proposes to Amend Margin Requirements for Uncleared Swaps

    September 23, 2020

    CFTC has proposed two rules to amend the margin requirements for uncleared swaps for swap dealers and major swap participants for which there is no prudential regulator (CFTC Margin Rule). In one of the rules, CFTC is proposing to revise the calculation method for determining whether certain entities come in the scope of the initial margin requirements under the CFTC Margin Rule beginning on September 01, 2021. Comments on this proposal must be received by October 23, 2020. Additionally, the proposed amendments of the other rule would permit the application of separate minimum transfer amounts for initial margin and variation margin and the application of an minimum transfer amounts of up to USD 50,000 for separately managed accounts. Comments on this proposed rule must be received by October 22, 2020.

    CFTC is proposing to revise the method for calculating average aggregate notional amounts (AANA) for determining whether a financial end-user has material swaps exposure. CFTC is also proposing to revise the timing for compliance with the initial margin requirements after the end of the last phase of compliance, with the aim to align these aspects of the CFTC Margin Rule with the BCBS-IOSCO framework or margin requirements for non-centrally cleared derivatives. CFTC is also proposing to allow swap dealers and major swap participants subject to CFTC Margin Rule to use the risk-based model calculation of initial margin of a counterparty that is a CFTC-registered swap dealer and major swap participant to determine the amount of initial margin to be collected from the counterparty and to determine whether the initial margin threshold amount for the exchange of initial margin has been exceeded such that documentation concerning the collection, posting, and custody of initial margin would be required. 

     

    Related Links

    Comment Due Date: October 23, 2020/October 22, 2020

    Keywords: International, Americas, US, Banking, Securities, Margin Requirements, Implementation Timeline, Initial Margin, Variation Margin, Swaps, AANA, Derivatives, Basel, BCBS, IOSCO, CFTC

    Featured Experts
    Related Articles
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    News

    PRA Finalizes Changes to Consolidated Prudential Rules Under CRD5/CRR2

    The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Finalizes Guidance to Assess Breaches of Large Exposure Limits

    The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Revises Guidelines on Stress Tests of Deposit Guarantee Schemes

    The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).

    September 15, 2021 WebPage Regulatory News
    News

    HKMA Endorses Industry Guidance to Support LIBOR Transition

    The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).

    September 14, 2021 WebPage Regulatory News
    News

    OCC Issues Booklet on Supervision of Problem Banks

    The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.

    September 13, 2021 WebPage Regulatory News
    News

    MAS Consults on Capital and Reporting Requirements for Market Risk

    The Monetary Authority of Singapore (MAS) launched a consultation on the standards for market risk capital and the associated reporting requirements for banks incorporated in Singapore.

    September 13, 2021 WebPage Regulatory News
    News

    FDIC Announces Winners of Tech Sprint to Reach Unbanked Consumers

    The tech lab of the Federal Deposit Insurance Corporation (FDIC) selected three winning teams in a tech sprint designed to explore new technologies and techniques to help banks meet the needs of unbanked consumers.

    September 13, 2021 WebPage Regulatory News
    News

    PRA Letter Sets Out Findings on Reliability of Regulatory Reporting

    PRA published a "Dear CEO" letter that sets out findings of a review on the reliability of regulatory reporting and reiterates the supervisory expectations on regulatory reporting.

    September 10, 2021 WebPage Regulatory News
    News

    APRA Connect to Go Live; APRA to Reduce Reliance on CLF

    The Australian Prudential Regulation Authority (APRA) confirmed that its new data collection solution APRA Connect will go live on September 13, 2021.

    September 10, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7472