SEC approves adjustment to minimum margin requirements
11 July 2019 Washington DC
Image: Shutterstock
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have approved and invited public comment on a joint proposal to align the minimum margin required on securities futures with other similar financial products.
The proposal would set the minimum margin requirements for security futures at 15 percent of the current market value of each security future.
According to the SEC, this proposal is one component of the SEC’s ongoing efforts to further harmonise their regulatory regimes for the benefit of investors and the markets.
The public comment period will remain open for 30 days following publication in the Federal Register, and all comments will be posted on both the CFTC’s website and the SEC’s website.
J. Christopher Giancarlo, CFTC chairman, commented: “ This proposal represents an important step taken by the Commissions to consider margin requirements for a jointly regulated financial instrument.”
“I am hopeful that the Commissions will continue this work and examine other ways to increase efficiencies for consumers while maintaining adequate protections against risk in the overall financial system.”
Jay Clayton, SEC chairman, said: “The proposal highlights the ongoing collaboration between the two Commissions and our progress in harmonisation of our respective regulatory regimes.”
Brian Quintenz, CFTC commissioner, stated: “This proposal to adjust margin requirements for security futures contracts, which are jointly regulated by our agencies, is the product of much hard work and cooperation between CFTC and SEC staff."
The proposal would set the minimum margin requirements for security futures at 15 percent of the current market value of each security future.
According to the SEC, this proposal is one component of the SEC’s ongoing efforts to further harmonise their regulatory regimes for the benefit of investors and the markets.
The public comment period will remain open for 30 days following publication in the Federal Register, and all comments will be posted on both the CFTC’s website and the SEC’s website.
J. Christopher Giancarlo, CFTC chairman, commented: “ This proposal represents an important step taken by the Commissions to consider margin requirements for a jointly regulated financial instrument.”
“I am hopeful that the Commissions will continue this work and examine other ways to increase efficiencies for consumers while maintaining adequate protections against risk in the overall financial system.”
Jay Clayton, SEC chairman, said: “The proposal highlights the ongoing collaboration between the two Commissions and our progress in harmonisation of our respective regulatory regimes.”
Brian Quintenz, CFTC commissioner, stated: “This proposal to adjust margin requirements for security futures contracts, which are jointly regulated by our agencies, is the product of much hard work and cooperation between CFTC and SEC staff."
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