Margin and Capital Requirements for Covered Swap Entities

Title: Margin and Capital Requirements for Covered Swap Entities
Subject: Swaps
Agency: FDIC, Federal Reserve, OCC
Status: Interim final rule

The OCC, Board, FDIC, FCA, and FHFA (each an Agency and, collectively, the Agencies) are adopting and inviting comment on an interim final rule amending the Agencies’ regulations that require swap dealers, security-based swap dealers, major swap participants, and major security-based swap participants under the Agencies’ respective jurisdictions to exchange margin with their counterparties for swaps that are not centrally cleared (non-cleared swaps) (Swap Margin Rule). Under the Swap Margin Rule, as amended, initial margin requirements will take effect under a phased compliance schedule spanning from 2016 through 2020, and in a final rule published elsewhere in today’s issue of the Federal Register, the Agencies have extended the phase- in period to 2021. Due to the COVID-19 pandemic, the Agencies are extending by one year the phases 5 and 6 implementation deadlines for initial margin requirements from September 1, 2020, to September 1, 2021 (for phase 5) and from September 1, 2021, to September 1, 2022 (for phase 6). The Agencies’ objective is to give covered swap entities additional time to meet their initial margin requirements under the rule so as not to hamper any efforts underway to address exigent circumstances caused by COVID-19.

FR Doc: 2020-14094
Date proposed: June 25, 2020
Comments due date: Aug. 31, 2020
Effective date:

Sept. 1, 2020

Rule compliance date:
Agency release:

Related Reg Report item(s): With (not unanimous) FDIC vote, all regulators now on board with swap margin rule