CFTC to Repropose Rules on Swap Dealer Capital

By Richard Hill

Feb. 5 — Commodity Futures Trading Commission staff is working to repropose rules to address capital requirements for swap dealers and major swap participants, Chairman Timothy Massad said today in Washington.

In a speech at a Treasury Department conference, Massad said that the commission is coordinating with the Securities and Exchange Commission and prudential banking regulators to harmonize the proposals with the other regulators. A rule was proposed in 2011 but was never adopted.

Massad said he also will ask the commission to take action on a rule proposed in June that would apply the CFTC's rules on uncleared margin internationally.

Meanwhile, as part of its efforts to ensure clearinghouse resiliency—and, if need be, recovery—the CFTC and clearinghouses are discussing auction procedures to increase efficiency and participation; considering whether and under what circumstances gains-based haircutting is appropriate and examining other tools available to central counterparties, such as partial tear-ups. Massad has said clearinghouse health will be a major focus of the agency in 2016.

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