CFTC Proposes Rules Regarding Margin Requirements for Uncleared Swaps for SDs and MSPs (Fed. Reg.)

The CFTC's proposed rules regarding margin requirements for uncleared swaps for swap dealers and major swap participants were published in the Federal Register. The proposed rules implement CEA Section 4s(e) ("Registration and Regulation of Swap Dealers and Major Swap Participants"), which requires the CFTC to adopt initial and variation margin requirements for certain swap dealers ("SDs") and major swap participants ("MSPs"). Additionally, the proposed rules would establish initial and variation margin requirements for SDs and MSPs, but would not require SDs and MSPs to collect margin from nonfinancial end users.

Additionally, the Federal Register publication contains an Advance Notice of Proposed Rulemaking, which requests comments on the cross-border application of such margin requirements.

Comments are due by December 2, 2014.

See: 79 FR 59898.Related news: CFTC Votes to Adopt Swaps Margin Rules (with Cadwalader Memorandum Regarding CFTC Meeting) (September 17, 2014).