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CFTC issues grace period for Dodd-Frank variation margin compliance

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Published on: 23 February 2017

Published by a LexisNexis Banking & Finance expert

Table of contents

Original news
Why has the CFTC delayed implementation of the VM rules?
What relief does this give?
Which market participants will assist?
Is it likely that the UK will follow this stance?
How has this been received in the market?
Are there any other points worth mentioning here?

Article summary

Banking & Finance analysis: The US Commodity Futures Trading Association (CFTC) has provided market participants with relief from compliance with upcoming variation margin (VM) rules. Edward Ivey, an associate in the New York office of Linklaters LLP, says the important point to remember is that the CFTC relief is not a blanket relief, it applies to swap dealers (SDs) only for not being in compliance with CFTC rules as of 1 March 2017 and they must act in good faith to progress with compliance.

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