Stroock Special Bulletin
"Final Margin Rules for Uncleared Swaps: A Comparison"
On December 16, 2015, the Commodity Futures Trading Commission (“CFTC”) adopted a final rule and interim final rule establishing margin requirements for uncleared swaps for swap dealers (“SDs”) and major swap participants (“MSPs”) that do not have a prudential regulator (together, the “CFTC Final Rule”). In October of 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, 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.