CFTC, FDIC Propose Swap Margin Rules

U.S. regulators have recommended two sets of regulations for margin requirements in swap transactions.

U.S. regulators have recommended two sets of regulations for margin requirements in swap transactions, Bloomberg reports. End-users will evade margin requirements in swaps with non-bank dealers or major swap participants under a proposal approved by the Commodity Futures Trading Commission. A joint proposal by the Federal Deposit Insurance Corporation, Federal Reserve and three other regulators may force end-users to post margin in swaps with banks. The proposals may require airlines, large manufacturers and other commercial end-users to set aside money to decrease risk in certain trades.

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