Statement of CFTC Acting Chairman J. Christopher Giancarlo Concerning No-Action Relief for March 1, 2017 Implementation of Variation Margin on Uncleared Swaps

February 13, 2017

“The CFTC remains committed to the March 1 date, agreed with its fellow US and overseas regulators, for posting of variation margin on swaps transactions between swaps dealers and their financial end-user customers. Nevertheless, the facts on the ground cannot be ignored that as much as ninety percent of those end-users are not ready to meet the new requirements despite their best efforts to do so.

“Global systemic risk is not reduced by the abrupt cessation of risk hedging activity by American life insurance companies and retirement funds at a time of enormous changes in financial rates and global asset values. This action by the CFTC does not change the scheduled time of arrival for the agreed margin implementation. It just foams the runway to ensure a safe landing.”

Last Updated: September 14, 2017