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FRS RIN: 7100-AF42 Publication ID: Fall 2019 
Title: ●Regulation KK -- Margin and Capital Requirements for Covered Swap Entities (Docket No: R-1654) 
Abstract:

The Office of the Comptroller of the Currency, Treasury (OCC); the Board of Governors of the Federal Reserve System (Board); the Federal Deposit Insurance Corporation (FDIC); the Farm Credit Administration (FCA); and the Federal Housing Finance Agency (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 the rule continue to hold swaps in their portfolios that were entered into before the effective dates of the rule. Those swaps are grandfathered from the Swap Margin Rule's requirements until they expire according to their terms. There are currently financial services firms located within the United Kingdom (U.K.) that conduct swap dealing activities subject to the Swap Margin Rule. The U.K. has provided formal notice of its intention to withdraw from the European Union (E.U.) on March 29, 2019. The Agencies seek to address industry concerns about the status of grandfathered swaps in this scenario, so the industry can focus on making preparations for swap transfers. These 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 grandfathered swaps that were entered into before the compliance dates of the Swap Margin Rule.

 
Agency: Federal Reserve System(FRS)  Priority: Substantive, Nonsignificant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: Independent agency 
CFR Citation: 12 CFR 237   
Legal Authority: 5 U.S.C. 553    12 U.S.C. 4802   
Legal Deadline:  None
Timetable:
Action Date FR Cite
Interim Final Rule  03/19/2019  84 FR 9940   
Interim Final Rule Effective  03/19/2019 
Interim Final Rule Comment Period End  04/18/2019 
Board Expects Further Action  09/00/2020 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Constance Horsley
Deputy Associate Director
Federal Reserve System
Division of Supervision and Regulation,
Washington, DC 20551
Phone:202 452-5239

Lesley Chao
Lead Financial Institution Policy Analyst
Federal Reserve System
Division of Supervision and Regulation,
Washington, DC 20551
Phone:202 452-2385

Jason Shafer
Counsel
Federal Reserve System
Legal Division,
Washington, DC 20551
Phone:202 728-5811