CFTC urged to cement relief from a non-cleared margin rule

Industry seeks permanent right to specify two minimum transfer amounts: for initial and variation margin

The derivatives industry is calling on US regulators to permanently allow a common application of a rule on margin for uncleared swaps, a change that would be welcomed by large funds and banks.

The rule relieves swap dealers and major swap participants of having to collect or post initial and variation margin as long as the combined required amount of collateral does not exceed $500,000 – the level known as the minimum transfer amount (MTA).

In reality, swap participants have been writing two