Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants-Cross-Border Application of the Margin Requirements

Résumé

On October 3, 2014, the Commission published proposed regulations to implement section 4s(e) of the Commodity Exchange Act, as added by section 731 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act"). This provision requires the Commission to adopt initial and variation margin requirements for swap dealers ("SDs") and major swap participants ("MSPs") that do not have a Prudential Regulator (collectively, "CSEs" or "Covered Swap Entities"). In the October 3, 2014 proposing release, the Commission also issued an Advance Notice of Proposed Rulemaking ("ANPR") requesting public comment on the cross-border application of such margin requirements. In this release, the Commission is proposing a rule for the application of the Commission's margin requirements to cross-border transactions.