Final Rule and Interim Final Rule: Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants
Federal Register Publication Date: 01/06/2016
Summary: The CFTC adopted regulations to implement a particular provision of the Commodity Exchange Act, as added by the Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘Dodd-Frank Act’’). This provision requires the CFTC to adopt initial and variation margin requirements for certain swap dealers (‘‘SDs’’) and major swap participants (‘‘MSPs’’). The final rules establish initial and variation margin requirements for SDs and MSPs but do not require SDs and MSPs to collect margin from nonfinancial end users. The CFTCalso adopted an interim final rule thatexempts certain uncleared swaps with certain counterparties from these margin requirements. This interim final rule implements Title III of the Terrorism Risk Insurance Program Reauthorization Act of 2015, which exempts from the margin rules for uncleared swaps certain swaps for which a counterparty qualifies for an exemption or exception from clearing under the Dodd-Frank Act.