Joint Proposed Rule on Swap Margin and Capital Requirements

On April 12, the FDIC, Fed, FCA, FHFA, and OCC issued a notice of proposed rulemaking establishing margin and capital requirements for swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants pursuant to Sections 731 and 764 of the Dodd-Frank Act. The proposal adopts a risk-based approach in establishing the minimum amount of margin a covered swap entity must collect from a counterparty and the frequency with which it must calculate and collect such margin. On April 12, the CFTC held an open meeting to discuss and approve a similar proposed rule. The Commissioners observed that significant inconsistencies between the CFTC rule and the rule proposed by the aforementioned agencies would need to be reconciled in future rulemaking actions. FDIC Release. Proposed Rule. CFTC Hearing Link.