20 March 2018
The Commissioners of the Commodity Futures Trading Commission (CFTC) unanimously approved (and made effective immediately) a comparability determination that found that margin requirements for uncleared swaps under European Union (EU) laws and regulations are comparable in outcome to those under the Commodity Exchange Act and CFTC regulations. Based on this determination, a swap dealer or major swap participant who complies with EU margin rules for an uncleared swap would be deemed to be in compliance with the CFTC's margin rules. The CFTC's announcement makes clear that such a swap dealer or major swap participant who has relied on substituted compliance where permitted under the CFTC's margin rules still remains subject to the CFTC's examination and enforcement authority. Similarly, the European Commission announced an equivalence decision that concluded that the CFTC's uncleared swap margin rules are comparable in outcome to the EU's corresponding margin requirements. For more information, see http://www.cftc.gov/PressRoom/PressReleases/pr7629-17.