SEC approves adjustment to minimum margin requirements
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SEC approves adjustment to minimum margin requirements 11 July 2019Washington DC Reporter: Maddie Saghir
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The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have approved and invited public comment on a to align the minimum margin required on securities futures with other similar financial products.
The proposal would set the minimum margin requirements for security futures at 15 percent of the current market value of each security future.
According to the SEC, this proposal is one component of the SEC鈥檚 ongoing efforts to further harmonise their regulatory regimes for the benefit of investors and the markets.
The public comment period will remain open for 30 days following publication in the Federal Register, and all comments will be posted on both the CFTC鈥檚 website and the SEC鈥檚 website.
J. Christopher Giancarlo, CFTC chairman, commented: 鈥� This proposal represents an important step taken by the Commissions to consider margin requirements for a jointly regulated financial instrument.鈥�
鈥淚 am hopeful that the Commissions will continue this work and examine other ways to increase efficiencies for consumers while maintaining adequate protections against risk in the overall financial system.鈥�
Jay Clayton, SEC chairman, said: 鈥淭he proposal highlights the ongoing collaboration between the two Commissions and our progress in harmonisation of our respective regulatory regimes.鈥�
Brian Quintenz, CFTC commissioner, stated: 鈥淭his proposal to adjust margin requirements for security futures contracts, which are jointly regulated by our agencies, is the product of much hard work and cooperation between CFTC and SEC staff."
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