On November 24th, the Structured Finance Industry
Group ("SFIG") submitted a comment letter1 to
the Board of Governors of the Federal Reserve System and other
prudential regulators (the "Prudential Regulators") and
to the Commodity Futures Trading Commission ("CFTC")
relating to proposed margin requirements for securitization
transaction swaps.
The Prudential Regulators and the CFTC both issued re-proposed
rules for uncleared swap margin in September.2 Under
both sets of rules, the majority of securitization special purpose
vehicles ("SPVs") would constitute "financial end
users," which is defined to include, inter alia,
private funds and entities that raise money from investors
primarily for the purpose of investing in loans, securities, swaps,
funds or other assets for resale and other disposition or otherwise
trading in loans, securities, swaps, funds or other assets.
Financial end users party to uncleared swaps would be subject to:
(i) initial margin
