Search Results for keywords:"margin requirements"

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Search Results: keywords:"margin requirements"

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  • 2020-27508 — Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants
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    Type:Rule
    Citation:86 FR 6850
    Reading Time:about 65 minutes

    The Commodity Futures Trading Commission (CFTC) has amended the margin rules for uncleared swaps for swap dealers and major swap participants without a prudential regulator. The new rules allow for a minimum transfer amount (MTA) of up to $50,000 for each separately managed account (SMA) of a legal entity. They also permit separate MTAs for initial and variation margin, provided they don't exceed $500,000 combined. These changes aim to reduce operational burdens while ensuring the swaps market continues to function smoothly and safely.

    Simple Explanation

    The CFTC changed some rules to make it easier for people who trade certain types of money deals without using banks' help. They said you can move about $50,000 around in special money accounts to make trading safer and smoother.

  • 2024-31177 — Regulations To Address Margin Adequacy and To Account for the Treatment of Separate Accounts by Futures Commission Merchants
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    Type:Rule
    Citation:90 FR 7880
    Reading Time:about 6 hours

    The Commodity Futures Trading Commission (CFTC) has introduced a new rule requiring futures commission merchants (FCMs) to ensure customers maintain enough funds to meet initial margin requirements before allowing withdrawals. This rule also allows FCMs to treat separate customer accounts as if they belong to separate entities, under certain conditions, to manage risks effectively. The new rule aims to protect customer funds, prevent systemic risks, and ensure the integrity of financial markets. It extends existing requirements for margin management currently applicable through DCOs to FCMs who are not clearing members.

    Simple Explanation

    The CFTC made a new rule that says when people want to take money out of their accounts with certain companies, they must have enough money left to cover important costs. Also, these companies can treat a person's different accounts as if they belong to different people, but only if they follow some rules.