TechFlow News, June 26: According to a notice published on the U.S. Securities and Exchange Commission (SEC) website, the SEC and the Commodity Futures Trading Commission (CFTC) jointly issued a request for public comment on June 26 seeking input on further harmonizing the portfolio margin regulatory framework for securities, security-based swaps, futures, swaps, and related positions.
The two agencies stated that this initiative aims to assess whether greater coordination could enhance risk management efficiency, reduce market fragmentation, and strengthen customer protection. The scope of the request for comment covers multiple topics, including existing margin methodologies, cross-product offsetting, capital and collateral treatment, clearinghouse considerations, and technical implementation.
SEC Chair Paul S. Atkins stated that further harmonization of the framework could prevent jurisdictional overlap from impeding innovation and efficiency, and cross-margining mechanisms could unlock liquidity currently locked in separate accounts. CFTC Chair Mike Selig also noted that enhanced cooperation between the two agencies would help unlock underutilized capital and build a more robust risk management system.
The public comment period will remain open for 60 days following publication in the Federal Register.
