On September 3, the Fed, the Farm
Credit Administration, the FDIC, the
FHFA, and the OCC sought comment
on a proposed rule to establish margin requirements for swap
dealers, major swap participants, security-based swap dealers and
major security-based swap participants as required by the
Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank Act). The proposed rule would establish minimum
requirements for the exchange of initial and variation
margin between covered swap entities and their
counterparties to non-cleared swaps and non-cleared security-based
swaps. The margin requirements mandated by the Dodd-Frank Act are
intended to address a number of weaknesses in the regulation and
structure of the swap markets that were revealed during the recent
financial crisis. The requirements are intended to reduce
risk, increase transparency, and promote market integrity.
Proposed Rule.
