SPEECHES & TESTIMONY

Statement of CFTC Chairman J. Christopher Giancarlo on Amending the Definition of “Eligible Master Netting Agreement” and Related Changes in the CFTC Margin Rule

November 19, 2018

Through the Commission’s Project KISS initiative, the Commission received suggestions to harmonize its uncleared swap margin rule with that of the Prudential Regulators.  In response, this final rule does so and provides market certainty, specifically with respect to amending the CFTC’s definition of “eligible master netting agreement” (EMNA) and amending the CFTC Margin Rule such that any legacy swap will not become subject to the CFTC Margin Rule if it is amended solely to comply with changes adopted by the Prudential Regulators in 2017.  The Commission recognizes that the CFTC Margin Rule does not provide relief for legacy swaps that might need to be amended to meet regulatory changes or requirements, and is committed to considering other meritorious requests for relief.