US Commodity Futures Trading Commission Adopts Final Margin Rules, Leaves Cross-Border Application For Future Rulemaking

Keywords: Commodity Futures Trading Commission, CFTC, swap entities, minimum margin requirements, Terrorism Risk Insurance Program Reauthorization Act 2015,

On December 16, 2015, the Commodity Futures Trading Commission ("CFTC") adopted a final rule to establish minimum margin requirements for registered swap dealers and major swap participants (collectively, "swap entities") that are not subject to margin requirements promulgated by one of the prudential regulators¹ ("covered swap entities" or "CSEs"), including provisions (adopted as an interim final rule, on which the CFTC requests comment) to implement margin exemptions added by the Terrorism Risk Insurance Program Reauthorization Act of 2015 ("TRIPRA") for swaps that qualify for the clearing exemptions and exceptions available to non-financial entities (including commercial end-users, captive finance subsidiaries and small financial institutions), treasury affiliates acting as agent and certain cooperatives.