SEC reopens comment period on margin requirements for swap dealers
15 October 2018 Washington DC
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The Securities and Exchange Commission (SEC) has voted to reopen the comment period on the proposed rules and amendments for capital, margin, and segregation requirements for security-based swap dealers and major security-based swap participants.
The commission has also given participants an option to give additional comment, including potential modifications to proposed rule language.
SEC said reopening the comment period would provide interested parties with an opportunity to submit comments that take into account regulatory and market developments since publication of the proposals.
According to SEC, this will also provide interested parties with the opportunity to provide comments on the potential economic effects of the proposals in light of these developments.
The commission is seeking additional comment for the credit risk charge for uncollected margin under the proposed capital rules for counterparties other than commercial end users.
It is also seeking comment on the treatment of collateral held at a third-party custodian under the proposed capital rules and the potential use of a uniform margin model, including an industry-developed model, to compute initial margin for non-cleared security-based swaps.
The public comment period will remain open for 30 days following publication of the release in the Federal Register.
Jay Clayton, chairman of SEC, said: “Reopening the comment period is an important step forward in standing up the security-based swap regime. We strongly encourage interested persons to submit comments and data for the commission to consider as the rulemaking process moves forward.”
The commission has also given participants an option to give additional comment, including potential modifications to proposed rule language.
SEC said reopening the comment period would provide interested parties with an opportunity to submit comments that take into account regulatory and market developments since publication of the proposals.
According to SEC, this will also provide interested parties with the opportunity to provide comments on the potential economic effects of the proposals in light of these developments.
The commission is seeking additional comment for the credit risk charge for uncollected margin under the proposed capital rules for counterparties other than commercial end users.
It is also seeking comment on the treatment of collateral held at a third-party custodian under the proposed capital rules and the potential use of a uniform margin model, including an industry-developed model, to compute initial margin for non-cleared security-based swaps.
The public comment period will remain open for 30 days following publication of the release in the Federal Register.
Jay Clayton, chairman of SEC, said: “Reopening the comment period is an important step forward in standing up the security-based swap regime. We strongly encourage interested persons to submit comments and data for the commission to consider as the rulemaking process moves forward.”
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