SEC proposes adjustment to minimum margin requirements
04 July 2019 Washington DC
Image: Shutterstock
The Securities and Exchange Commission (SEC) has proposed to align the minimum margin required on security futures with other similar financial products.
In its proposal, the SEC has pledged to set the minimum margin requirement for securities finance at 15 percent of the current market value, awaiting the Commodity Futures Trading Commission’s (CFTC) approval.
The SEC currently holds joint authority with the Commodity Futures Trading Commission (CFTC) concerning margin requirements.
The minimum margin requirement has been set at 20 percent since 2002, which the SEC decided to reconsider following the implementation of lower margin requirements for comparable financial products.
The CFTC has set its vote for 11 July; if the CFTC-SEC proposal is granted, it will be published in the Federal Register.
In its proposal, the SEC has pledged to set the minimum margin requirement for securities finance at 15 percent of the current market value, awaiting the Commodity Futures Trading Commission’s (CFTC) approval.
The SEC currently holds joint authority with the Commodity Futures Trading Commission (CFTC) concerning margin requirements.
The minimum margin requirement has been set at 20 percent since 2002, which the SEC decided to reconsider following the implementation of lower margin requirements for comparable financial products.
The CFTC has set its vote for 11 July; if the CFTC-SEC proposal is granted, it will be published in the Federal Register.
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