CFTC questions system-readiness of firms to be covered by uncleared-swaps margin rule

25 April 2019 9:13am
US regulators expressed concern about the system-readiness of hedge funds and banks with relatively little derivatives activity as they anticipate final uncleared-swap margin standards due to take effect next year.

“We don’t know if these 1,100 entities will be ready to comply,” Rafael Martinez, a US Commodity Futures Trading Commission senior analyst, said last week at a meeting* about the rule. “This is the biggest challenge we have on our horizon.”

The head of the National Futures Association, an industry self-regulator, voiced similar doubts about models to be used by these US and overseas firms in calculating whether they reach initial margin of 50 million euros or dollars.