Trade Associations Urge Changes To CFTC Swap Margin Rules

The Futures Industry Association ("FIA"), the Managed Funds Association ("MFA"), SIFMA and the Institute of International Bankers ("IIB"), and SIFMA AMG offered recommendations (see here and here) on the CFTC's proposed amendments to uncleared swap margin regulations.

As previously covered, the CFTC proposed (i) extending the implementation date of initial margin requirements and (ii) exempting certain transactions with the European Stability Mechanism ("ESM") from uncleared margin requirements. Specifically, the CFTC would extend the "Phase Five" implementation date of the swaps initial margin requirements for firms with an aggregate average notional amount of between $8 billion and $50 billion to September 1, 2021. In addition, the CFTC proposed exempting uncleared swaps with the ESM from uncleared swap margin requirements by explicitly excepting the ESM from the definition of "financial end user."