The Commodity Futures Trading Commission (CFTC) has
favoured a legal segregation model for cleared swap margin
requirements. This brings discrepancies between US and EU
over-the-counter (OTC) derivative reforms to the fore.
With the US’s OTC derivative
regulations due in two months, tensions between the Securities
Exchange Commission (SEC) and CFTC's approach has
drawn much attention.
But collateral requirements under the EU and US
proposed regimes are also still moving in different
Last week the CFTC proposed a complete legal segregation