View Rule

The Commission proposes to amend the definition of material swap exposure.  The proposed amendment would have the effect of aligning the CFTC’s method for determining whether an entity comes within the scope of the initial margin (IM) requirements and the timing for compliance with the IM requirements after the end of the phased compliance schedule with the Basel Committee on Banking Supervision and Board of the International Organization of Securities Commissions’ framework for non-cleared over-the-counter derivatives.  The Commission is also proposing to allow swap dealers (SDs) and major swap participants (MSPs) subject to the CFTC Margin Rule to use the risk-based model calculation of IM of a counterparty that is a CFTC-registered SD or MSP to determine the amount of IM to be collected from the counterparty and to determine whether the IM threshold amount for the exchange of IM has been exceeded such that documentation concerning the collection, posting, and custody of IM would be required.