Derivatives

Title: Derivatives
Subject: Derivatives
Agency: NCUA
Status:
Final rule
Summary:

The NCUA Board (Board) is amending the NCUA’s Derivatives rule. The Board issued a proposed Derivatives rule at its October 2020 meeting. This final rule will modernize the NCUA’s Derivatives rule and make it more principles-based, while retaining key safety and soundness components. The changes contained herein will provide more flexibility for federal credit unions (FCUs) to manage Interest Rate Risk (IRR) through the use of Derivatives. The Board is finalizing the rule largely as proposed, except for a few changes to various sections based on comments received. Such changes include permitting written options that comply with this final rule and amending the collateral requirements for cleared Derivatives. In addition, the Board is not finalizing a proposed change that would have required all Counterparties to be domiciled in the United States.

FR Doc: 2021-11055
Date proposed: Oct. 15, 2020
Comments due date: Dec. 20, 2020
Effective date:

June 25, 2021

Rule compliance date:
Agency release: Board Proposes Changes to Derivatives Rule; Approves Final Corporate Rule
Related Reg Report item(s):

Agency proposes a more ‘principles-based’ derivatives rule, more flexibility for FCUs

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