U.S. prudential regulators proposed rule amendments governing
margin requirements for uncleared swaps and security-based swaps.
The proposed rule amendments were published in the Federal Register. Comments on
the proposal must be submitted by December 9, 2019.
As previously covered, the proposal would make
five substantive changes to the margin rules: (i) removal of
inter-affiliate initial margin, (ii) amendments to permit changes
to "legacy" swaps relating to benchmarks, (iii) extension
of the compliance period for initial margin, (iv) permission of
non-material amendments to "legacy" transactions and (v)
clarification regarding documentation requirements when initial
margin is not exchanged due to the $50 million threshold.
