SEC And CFTC Seek Feedback On Portfolio Margining

In a joint request for comment, the SEC and CFTC solicited feedback on possible methods for implementing portfolio margining of SEC- and CFTC-regulated products (including swaps, security-based swaps, securities and futures). The joint request for comment seeks input from market participants on all facets of portfolio margining including (i) the risks of margining uncleared swaps and security-based swaps positions, and (ii) the regulatory and operational issues that are posed by such margining.

Commissioner Statements

CFTC Chair Heath P. Tarbert stressed the "central importance" of portfolio margining to dually-registered market participants that have customers holding positions in separate accounts without the possibility of cross-margining such positions. Mr. Tarbert also emphasized that the request for comment is a result of the efforts of SEC Chair Jay Clayton and Mr. Tarbert's predecessor, former CFTC Chair J. Christopher Giancarlo.