The CFTC adopted a final rule delaying the compliance date for "Phase Six" of the initial margin requirements (for non-prudentially regulated swap dealers and major swap participants with "smaller uncleared swap portfolios") from September 1, 2021 to September 1, 2022.

As previously covered, the final rule follows an interim final rule in which the CFTC delayed "Phase Five" from September 1, 2020 to September 1, 2021. The added delay affects entities with $8 billion to $50 billion in derivatives notional over the relevant measuring period. The CFTC indicated that the newly adopted delay is intended to align with a recent delay adopted as part of a Basel Committee on Banking Supervision/IOSCO revised framework for uncleared derivatives margin.

In a statement, CFTC Commissioner Brian Quintenz cited the necessity of the delay as a result of "the unprecedented economic and social impacts of COVID-19 and the potential market disruption that could result from a large number of entities coming into scope on September 1, 2021."

The final rule goes into effect 30 days after its publication in the Federal Register.

Primary Sources

  1. CFTC Voting Draft: Phase VI Compliance Date Extension
  2. CFTC Press Release: CFTC Finalizes Position Limits Rule at October 15 Open Meeting
  3. CFTC Statement, Brian D. Quintenz: Supporting Statement Regarding Final Rule Further Extending the Compliance Schedule for Initial Margin Requirements for Firms with Smaller Swap Portfolios

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