US: Federal agencies propose rule to amend the swap margin rule
US federal agencies have proposed to change the swap margin rules to facilitate the implementation of prudent risk management strategies at certain banks and swap entities.
The swap margin rule would no longer require swap entities to hold initial margin for uncleared swaps with affiliates. Inter-affiliate transactions would still be subject to variation margin requirements.
The proposal would give firms additional flexibility to allocate collateral internally, supporting prudent risk management strategies that support safety and soundness.
Comments on the proposal will be accepted for 30 days following publication in the Federal Register.