SEC, CFTC seek input on unified portfolio margin rules across securities and derivatives

The regulatory agencies are seeking public feedback on cross-margining, collateral and risk management as cryptocurrency derivatives and multi-asset trading continue to expand.

The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have opened a joint public consultation on whether to better align portfolio margin rules across securities and derivatives markets, seeking feedback on approaches that could expand cross-margining and reduce market fragmentation.

The agencies are requesting input on cross-margining, collateral treatment, risk management, customer protections and the 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 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.

Read more