Stroock Special Bulletin
"Cross-Border Application of Margin Requirements for Uncleared Swaps"
On May 24, 2016, the Commodity Futures Trading Commission (“CFTC”) issued a final rule (the “CFTC Final Rule”) on the cross-border application of the CFTC’s margin requirements for uncleared swaps for swap dealers (“SDs”) and major swap participants (“MSPs”) that do not have a prudential regulator.
On October 30, 2015, the Department of the Treasury’s Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Farm Credit Administration and Federal Housing Finance Agency (collectively, the “Prudential Regulators”) had jointly adopted a final rule and interim final rule that addressed, among other topics, the cross-border application of margin requirements for uncleared swaps for SDs and MSPs that fall under their prudential regulation (together, the “Prudential Regulators Final Rule” and, with the CFTC Final Rule, the “Final Rules”).
This Stroock Special Bulletin compares and contrasts these Final Rules.