SIFMA Backs CFTC, SEC Proposal to Expand Cross-Regulator Margining

SIFMA urged the CFTC and SEC to allow economically related positions to be margined together across jurisdictional lines. The regulators' joint request for comment on margining asked how the agencies could expand margining for cash securities, options, futures, swaps, and non-securities assets such as digital commodities (see prior coverage). 

In a letter, SIFMA and its Asset Management Group said current requirements often force economically related positions into separate accounts under different margin methodologies. Quoting the agencies' own request, SIFMA said the structure produces capital inefficiencies or increased liquidity demands "without necessarily enhancing market stability."

The association asked the agencies to resolve conflicts among their margin and segregation rules so economically related products could be portfolio-margined across jurisdictional lines. Specifically, SIFMA recommended that the CFTC let broker-dealers that are also swap dealers portfolio-margin uncleared equity swaps alongside other equity positions in accounts governed by FINRA Rule 4210 ("Margin Requirements") and SEA Rule 15c3-3 ("Customer protection-reserves and custody of securities"). The association also recommended that the same risk-based principles apply to digital commodities and related securities and derivatives.

Additionally, SIFMA urged broader cross-margining across accounts, intermediaries, and clearing organizations. It pointed to the agencies' April 2026 actions on Treasury positions cleared at the Fixed Income Clearing Corporation, as well as Treasury futures cleared at CME, as a model for coordinated relief.