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2023-16572 Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants Proposed Rule The Commodity Futures Trading Commission ("Commission" or "CFTC") is proposing to amend the margin requirements for uncleared swaps applicable to swap dealers ("SDs") and major swap participants ("MSPs") for which there is no prudential regulator. The proposed amendment would revise the definition of "margin affiliate" to provide that certain collective investment vehicles ("investment funds" or "funds") that receive all of their start-up capital, or a portion thereof, from a sponsor entity ("seeded funds") would be deemed not to have any margin affiliates for the purposes of calculating certain thresholds that trigger the requirement to exchange initial margin ("IM") for uncleared swaps. This proposed amendment ("Seeded Funds Proposal") would effectively relieve SDs and MSPs from the requirement to post and collect IM with certain eligible seeded funds for their uncleared swaps for a period of three years from the date on which the eligible seeded fund's asset manager first begins making investments on behalf of the fund ("trading inception date"). The Commission is also proposing to eliminate a provision disqualifying the securities issued by certain pooled investment funds ("money market and similar funds") that transfer their assets through securities lending, securities borrowing, repurchase agreements, reverse repurchase agreements, and similar arrangements from being used as eligible IM collateral, thereby expanding the scope of assets that qualify as eligible collateral ("Money Market Funds Proposal"). Additionally, the Commission is proposing an amendment to the haircut schedule set forth in a Commission Regulation to add a footnote that was inadvertently omitted when the rule was originally promulgated. 2023-08-08 2023 8 https://www.federalregister.gov/documents/2023/08/08/2023-16572/margin-requirements-for-uncleared-swaps-for-swap-dealers-and-major-swap-participants https://www.govinfo.gov/content/pkg/FR-2023-08-08/pdf/2023-16572.pdf Commodity Futures Trading Commission 77 The Commodity Futures Trading Commission ("Commission" or "CFTC") is proposing to amend the margin requirements for uncleared swaps applicable to swap dealers ("SDs") and major swap participants ("MSPs") for which there is no prudential regulator. The...  

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