Voglio sapere a riguardo di…

6854

Federal Register / Vol. 86, No. 14 / Monday, January 25, 2021 / Rules and Regulations
jbell on DSKJLSW7X2PROD with RULES

reduce the cost and burdens associated with the transfer of small margin balances, without undermining the Commissions objective of requiring swap counterparties to protect themselves by mitigating their credit and market risks. The Commission further notes that similar applications of the MTA are permitted in certain foreign jurisdictions, including the European Union.39 The amendment to Regulation 23.158a therefore promotes consistent regulatory standards across jurisdictions, in line with the statutory mandate set forth in the Dodd-Frank Act 40 and reduces the need for market participants to create and implement IM
and VM settlement flows tailored to different jurisdictions.
A number of commenters confirmed the Commissions understanding that the application of separate MTAs for IM
and VM facilitates compliance with the CFTC Margin Rule.41 Commenters noted that if swap counterparties were required to apply a single combined MTA, they would need to implement significant changes to the documentation and operational processes.42 In particular, ICI noted that in the absence of Letter 1925 and this Final Rule, counterparties would have to reconcile two operational processes:
Margin calculation protocols that account for a combined MTA and separate workflows that exist for IM and VM settlement in light of the Commissions segregation requirements, which differentiate treatment for IM and VM. 43
Several commenters expressed support for extending the application of separate MTAs for IM and VM to SMAs for which an MTA of up to $50,000
would be applicable, noting that the stated rationale for proposing the revisions to Regulation 23.158a applies equally to SMAs and that allowing such application would establish a consistent regulatory approach to applying MTA
39 See Commission Delegated Regulation EU
2016/2251 Supplementing Regulation EU No. 648/
2012 of the European Parliament and of the Council of July 4, 2012 on OTC Derivatives, Central Counterparties and Trade Repositories with Regard to Regulatory Technical Standards for RiskMitigation Techniques for OTC Derivative Contracts Not Cleared by a Central Counterparty Oct. 4, 2016, Article 254, https eur-lex.europa.eu/legalcontent/EN/TXT/PDF/
?uri=CELEX:32016R2251&from=EN.
40 See section 752 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111203, 124 Stat. 1376 2010, calling on the CFTC
to consult and coordinate on the establishment of consistent international standards with respect to the regulation of swaps.
41 See ACLI at 2; MFA at 4; SIFMA AMG at 4.
42 See e.g., ACLI at 2.
43 See ICI at 8.

VerDate Sep<11>2014

17:40 Jan 22, 2021

Jkt 253001

thresholds.44 In addition, noting some ambiguity, SIFMA AMG urged the Commission to confirm that the ability to apply separate MTAs for IM and VM
would extend to SMAs.45 In response, the Commission confirms that the amendments to Regulations 23.151 and 23.158a, as adopted, permit a CSE to apply separate MTAs for IM and VM
with each counterparty, or an SMA of a counterparty, provided the MTAs, on a combined basis, do not exceed the respective limits set by Regulation 23.151. The Commission notes that the text of the amendment to Regulation 23.158a refers to Regulation 23.151, which, as amended, defines MTA and provides for the application of an MTA
of up to $50,000 for each SMA of a counterparty, thus allowing for the application of separate amounts of IM
and VM to the MTA of an SMA, as provided in amended Regulation 23.151.
C. Conforming Changes Consistent with the amendment to the definition of MTA in Regulation 23.151, the Commission is adopting conforming changes to Regulations 23.152b3 and 23.153c by replacing $500,000 with the minimum transfer amount, as the term is defined in 23.151. The changes replace the reference to $500,000 in current Regulations 23.152b3 and 23.153c, which effectively limits the MTA to $500,000, with a reference to the revised definition of MTA, which allows for the application of an MTA of up to $50,000 for each SMA.
III. Administrative Compliance The Regulatory Flexibility Act RFA requires Federal agencies to consider whether the rules they propose will have a significant economic impact on a substantial number of small entities.46 As discussed in the Proposal, the amendments being adopted herein only affect certain SDs and MSPs and their counterparties, which must be eligible contract participants ECPs.47 The Commission has previously established that SDs, MSPs and ECPs are not small entities for purposes of the RFA.48 Therefore, the Commission believes that the Final Rule will not have a significant economic 44 See
ICI at 9; MFA at 4.
SIFMA AMG at 4.
46 5 U.S.C. 601 et seq.
47 Pursuant to section 2e of the CEA, 7 U.S.C.
2e, each counterparty to an uncleared swap must be an ECP, as defined in section 1a18 of the CEA, 7 U.S.C. 1a18.
48 See Further Definition of Swap Dealer, Security-Based Swap Dealer, Major Swap Participant, Major Security-Based Swap Participant and Eligible Contract Participant, 77
FR 30596, 30701 May 23, 2012.
45 See
PO 00000

Frm 00008

Fmt 4700

Sfmt 4700

impact on a substantial number of small entities, as defined in the RFA.
Accordingly, the Chairman, on behalf of the Commission, hereby certifies pursuant to 5 U.S.C. 605b that the Final Rule will not have a significant economic impact on a substantial number of small entities.
A. Paperwork Reduction Act The Paperwork Reduction Act of 1995
PRA 49 imposes certain requirements on Federal agencies, including the Commission, in connection with their conducting or sponsoring any collection of information, as defined by the PRA. The Commission may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid Office of Management and Budget control number. The Final Rule, as adopted, contains no requirements subject to the PRA.
B. Cost-Benefit Considerations Section 15a of the CEA 50 requires the Commission to consider the costs and benefits of its actions before promulgating a regulation under the CEA. Section 15a further specifies that the costs and benefits shall be evaluated in light of the following five broad areas of market and public concern: 1
Protection of market participants and the public; 2 efficiency, competitiveness, and financial integrity of futures markets; 3 price discovery;
4 sound risk management practices;
and 5 other public interest considerations. The Commission considers the costs and benefits resulting from its discretionary determinations with respect to the section 15a considerations.
The Commission is amending Regulation 23.151 consistent with Letter 1712. The Commission is revising the definition of MTA in Regulation 23.151
to permit CSEs to apply an MTA of up to $50,000 for each SMA of a counterparty that enters into uncleared swaps with a CSE. The Commission also is amending Regulation 23.151 to add a definition for the term SMA or separately managed account. The Commission is also revising Regulation 23.158a consistent with Letter 1925
to state that if a CSE and its counterparty agree to have separate MTAs for IM and VM, the respective amounts of MTA must be reflected in the margin documentation required by Regulation 23.158a. Finally, the Commission is adopting conforming 49 44
50 7

E:FRFM25JAR1.SGM

U.S.C. 3501 et seq.
U.S.C. 19a.

25JAR1