Comments due: FDIC, Federal Reserve, OCC (swaps)
The Federal Deposit Insurance Corp. (FDIC), Federal Reserve Board, and Office of the Comptroller of the Currency (OCC), and other regulators are proposing to amend the agencies’ regulations that require swap dealers and security-based swap dealers under the regulators’ jurisdictions to exchange margin with their counterparties for swaps that are not centrally cleared (Swap Margin Rule). The proposed rule would, among other things, repeal the inter-affiliate initial margin requirements.
Other provisions would permit swaps entered into prior to an applicable compliance date (legacy swaps) to retain their legacy status in the event that they are amended to replace an interbank offered rate (IBOR) or other discontinued rate; introduce an additional compliance date for initial margin requirements; clarify the point in time at which trading documentation must be in place; permit legacy swaps to retain their legacy status in the event that they are amended due to technical amendments, notional reductions, or portfolio compression exercises; and make technical changes. (The comment deadline was extended from Dec. 9, 2019.)