CFTC Advisory Committee Considers Swap Margin Implementation And Proposed EMIR Rules

At a meeting of the CFTC Global Markets Advisory Committee, Commissioners considered (i) the continuing implementation of margin requirements for uncleared swaps and (ii) home regulator deference under European Market Infrastructure Regulation ("EMIR 2.2") rules, including a response to treatment of central clearing counterparties.

Initial Margin for Non-Centrally Cleared Derivatives

CFTC Chair Heath Tarbert stated that the CFTC should grant an extension for "phase five" counterparties, and that the CFTC would vote in the "near future" on whether to issue a proposal to amend its margin rules consistent with a recent proposal by U.S. banking regulators. Commissioner Brian Quintenz also encouraged extending the compliance deadline, saying that BCBS-IOSCO has recognized the "operation challenges" associated with phase five implementation. Commissioner Dawn D. Stump stated that now is a good time to reflect on past implementation phases in order to understand what it