SEC, CFTC Seek Input on Unified Portfolio Margin Rules

The US Securities and Exchange Commission and Commodity Futures Trading Commission have launched a joint public consultation on aligning portfolio margin rules across securities and derivatives markets. The agencies are asking for feedback on cross-margining, collateral treatment, risk management, customer protections and potential effects on market liquidity and competition.

The public comment period will remain open for 60 days after the request is published in the Federal Register. Cross-margining allows offsetting positions across different products or markets to be considered together when calculating margin, so margin is based on the portfolio’s overall risk rather than each position in isolation.

"Cross-margining offers a clear opportunity to unlock liquidity that remains frozen in separate accounts," SEC Chair Paul Atkins said, adding that harmonizing the agencies’ frameworks could help prevent jurisdictional overlap from limiting innovation and market efficiency.

United States

sec, cftc, portfolio margin, cross-margining, collateral, risk management, customer protections, market liquidity, federal register, derivatives