The Commodity Futures Trading Commission (CFTC) has finalized amendments to its rules about margin requirements for certain swaps. These changes update how entities determine if they fall under the requirement to exchange initial margin for swaps that aren't centrally cleared. The amendments align the CFTC rules with international standards set by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions. In addition, it allows certain swap dealers to use a risk-based model from other registered swap dealers to calculate necessary initial margins, making compliance more practical and internationally consistent.
Simple Explanation
The Commodity Futures Trading Commission (CFTC) is making changes to the rules about how much money swap dealers need to keep aside when they make certain types of trades. These changes help make the rules more similar to those in other countries, making it easier and fairer for everyone.