Futures Trading Commission (CFTC) has adopted a
final rule for applying its uncleared swap margin requirements
in cross-border transactions. Counsel, welcoming the
rule’s adoption, nonetheless see unnecessary
complexity in the CFTC’s choice of an
The final CFTC rule
was long-awaited. Prudential regulators finished their rules in
November and the CFTC finished their substantive margin rules
in January. There are now two global compliance dates under the
Basel Committee on Banking
Supervision (BCBS) and International Organization of
Securities Commissions (Iosco) framework, adhered to by
both CFTC and prudential regulators. The first is September 1
for larger entities, and the second March 1 for most others.
That means the market has just over three months to digest and
implement the CFTC’s final rule.
James Schwartz, Morrison & Foerster
Crucially, the CFTC has opted for an elements-based approach
instead of a holistic regime. As such, the...