Treasury recommends that U.S. regulators take steps to harmonize their margin requirements for uncleared swaps domestically and cooperate with non-U.S. jurisdictions that have implemented the Basel Committee on Banking Supervision-International Organization of Securities Commissions (BCBSIOSCO) framework to promote a level playing field for U.S. firms.
- The U.S. banking agencies should consider providing an exemption from the initial margin requirements for uncleared swaps for transactions between affiliates of a bank or bank holding company in a manner consistent with the margin requirements of the CFTC and the corresponding non-U.S. requirements, subject to appropriate conditions.
- The CFTC and U.S. banking regulators should work with their international counterparts to amend the uncleared margin framework so it is more appropriately tailored to the relevant risks.
- Where warranted based on logistical and operational considerations, the CFTC and the U.S. banking agencies should consider amendments to their rules to allow for more realistic time frames for collecting and posting margin.
- The CFTC and the U.S. banking regulators should reconsider the onesize-fits-all treatment of financial end users for purposes of margin on uncleared swaps and tailor their requirements to focus on the most significant source of risk.
- Consistent with these objectives, the SEC should repropose and finalize its proposed margin rule for uncleared security-based swaps in a manner that is aligned with the margin rules of the CFTC and the U.S. banking regulators.