Joint Request for Comment on Further Implementation of Portfolio Margining and Cross-Margining of Securities and Derivatives
Key claim: The CFTC and SEC are jointly soliciting public comment on ways to further implement portfolio margining and cross-margining of securities and derivatives under their respective jurisdictions.
Abstract
(Proposed Rule · Commodity Futures Trading Commission, Securities and Exchange Commission) The Commodity Futures Trading Commission (“CFTC”) and the Securities and Exchange Commission (“SEC”) (together, the “Commissions”) request public comment on potential ways to further implement portfolio and cross-margining of securities and derivatives that are subject to the jurisdiction of either the SEC or CFTC, or both Commissions.
Why this matters
Portfolio and cross-margining sits at the seam between SEC-regulated securities and CFTC-regulated derivatives, and capital efficiency for broker-dealers, FCMs, and their clients depends heavily on how offsets across these products are recognized. A joint RFC signals coordinated interest in expanding these frameworks, which could reduce margin costs for market participants holding hedged positions but also raises questions about clearinghouse risk management and cross-jurisdictional supervision.