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FDIC | RIN: 3064-AF00 | Publication ID: Spring 2019 |
Title: ●Margin and Capital Requirements for Covered Swap Entities Agencies | |
Abstract:
The OCC, Board, FDIC, FCA, and FHFA (each an Agency and, collectively, the Agencies) are adopting and invite comment on an interim final rule amending the Agencies’ regulations that require swap dealers and security-based swap dealers under the Agencies’ respective jurisdictions to exchange margin with their counterparties for swaps that are not centrally cleared (Swap Margin Rule). The Swap Margin Rule takes effect under a phased compliance schedule stretching from 2016 through 2020, and the dealers covered by them continue to hold swaps in their portfolios that were entered into before the effective dates of the rule. These swaps are grandfathered from the Swap Margin Rule’s requirements until they expire according to their terms. There are currently banking entities located within the United Kingdom (UK) that conduct swap dealing activities subject to the Swap Margin Rule. The UK has provided formal notice of its intention to withdraw from the European Union (EU) on March 29, 2019, absent a negotiated agreement that would allow these swap dealers located in the UK to continue to be authorized to provide full-scope financial services to swap counterparties located in the EU. The Agencies’ interim final rule is designed to address the scenario likely to ensue, whereby swap dealers located in the UK might choose to transfer their existing swap portfolios that face counterparties located in the EU over to an affiliate or other related establishment located within the EU. Such transfers, if carried out in accordance with the conditions of the interim final rule, will not trigger the application of the Swap Margin Rule to swaps that are grandfathered from the rule. Accordingly, the transferred swaps would continue to be grandfathered under the Swap Margin Rule as they are applied to the EU establishments of the swap dealers receiving the transferred swap portfolios. |
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Agency: Federal Deposit Insurance Corporation(FDIC) | Priority: Substantive, Nonsignificant |
RIN Status: First time published in the Unified Agenda | Agenda Stage of Rulemaking: Final Rule Stage |
Major: Undetermined | Unfunded Mandates: No |
EO 13771 Designation: Independent agency | |
CFR Citation: 12 CFR 349.1 | |
Legal Authority: Section 4s(e) of the Commodity Exchange Act (7 U.S.C. 6s(e)) Section 15F(e) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–10(e)) Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) |
Legal Deadline:
None |
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Timetable:
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Additional Information: Email: comments@fdic.gov. Please include RIN 3064-AF00 in the subject line of the email. | |
Regulatory Flexibility Analysis Required: No | Government Levels Affected: None |
Federalism: No | |
Included in the Regulatory Plan: No | |
International Impacts: This regulatory action will be likely to have international trade and investment effects, or otherwise be of international interest. | |
RIN Information URL: https://www.fdic.gov/regulations/laws/federal/ | Public Comment URL: https://www.fdic.gov/regulations/laws/federal/ |
RIN Data Printed in the FR: No | |
Related RINs: Related to 3064-AE21, Related to 3064-AE70 | Related Agencies: Joint: TREAS/OCC, FRS, FCA, FHFA; |
Agency Contact: Irina Leonova Senior Policy Analyst Federal Deposit Insurance Corporation 550 17th Street NW, Washington, DC 20429 Phone:202 898-3843 Email: ileonova@fdic.gov Thomas Hearn Counsel Federal Deposit Insurance Corporation 550 17th Street NW, Washington, DC 20429 Phone:202 898-6967 Email: thohearn@fdic.gov |