This story appeared in Bank Digest.
Five federal agencies--the Federal Reserve Board, Farm Credit Administration, Federal Deposit Insurance Corporation, Federal Housing Finance Agency, and Office of the Comptroller of the Currency--are proposing to amend swap margin requirements to conform with recent rule changes that impose new restrictions on certain qualified financial contracts of systemically important banking organizations. The Swap Margin Rule was issued in November 2015 by the agencies and established minimum margin requirements for swaps and security-based swaps that are not cleared through a clearinghouse.
The agencies' joint release said that under the proposed amendments, legacy swaps entered into before the applicable compliance date would not become subject to the margin requirements if they are amended solely to comply with the requirements of the QFC Rules.
In addition, the proposed amendments would also harmonize the definition of "Eligible Master Netting Agreement" in the Swap Margin Rule with recent changes to the definition of "Qualifying Master Netting Agreement" in the respective capital and liquidity regulations of the Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency. Comments on the proposed rule should be received within 60 days of its publication in the Federal Register.