CFTC Delays Compliance Date For Phase Six Initial Margin Requirements

The CFTC adopted a final rule delaying the compliance date for "Phase Six" of the initial margin requirements (for non-prudentially regulated swap dealers and major swap participants with "smaller uncleared swap portfolios") from September 1, 2021 to September 1, 2022.

As previously covered, the final rule follows an interim final rule in which the CFTC delayed "Phase Five" from September 1, 2020 to September 1, 2021. The added delay affects entities with $8 billion to $50 billion in derivatives notional over the relevant measuring period. The CFTC indicated that the newly adopted delay is intended to align with a recent delay adopted as part of a Basel Committee on Banking Supervision/IOSCO revised framework for uncleared derivatives margin.