Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants

摘要

The United Kingdom ("UK") has provided formal notice of its intention to withdraw from the European Union ("EU"). The withdrawal may happen as soon as April 12, 2019 and may transpire without a negotiated agreement between the UK and EU ("No-deal Brexit"). To the extent there is a No-deal Brexit, affected swap dealers ("SDs") and major swap participants ("MSPs") may need to effect legal transfers of uncleared swaps that were entered into before the relevant compliance dates under the CFTC Margin Rule or Prudential Margin Rule (each, as defined herein) and that are not now subject to such rules, in whole or in part. The Commodity Futures Trading Commission ("Commission" or "CFTC") is adopting, and invites comments on, an interim final rule amending its margin requirements for uncleared swaps for SDs and MSPs for which there is no prudential regulator ("CFTC Margin Rule") such that the date used for purposes of determining whether an uncleared swap was entered into prior to an applicable compliance date will not change under the CFTC Margin Rule if the swap is transferred, and thereby amended, in accordance with the terms of the interim final rule in respect of any such transfer, inc