SEC And CFTC Adopt Reduced Margin Requirements For Security Futures

The SEC and CFTC (collectively, the "Commissions") adopted a final rule reducing the margin requirements for security futures. The final rule harmonized the requirements regardless of whether such products are held in a futures account or in a securities portfolio margin account.

The final rule amends CFTC Rule 41.45 ("Required Margin") and SEC Rule 202.403 ("Required Margin") to lower the minimum margin requirement for security futures from 20 percent to 15 percent of the market value for each security future. The lower margin requirements would apply to security futures held in futures accounts and in securities accounts not subject to the portfolio margining rules.

The joint final rule will go into effect 30 days after its publication in the Federal Register.