Federal Regulators Reject Market Bid for Exemption From Margin Requirements for Swaps Held by Securities Trusts
November 13, 2015
Federal regulators late last month rejected industry requests that swap agreements entered into by securitization vehicles be exempt from new capital and margin requirements. The three federal banking regulators, along with the Federal Housing Finance Agency, finalized a rule that requires covered swap entities to collect and post initial margin to counterparties that are swap entities or financial end users with material swaps exposure of $8 billion or more. The Structured Finance Industry Group had argued...