SEC and CFTC Open Joint Review of Cross-Margining Rules

U.S. regulators are taking a fresh look at how margin requirements work across securities and derivatives markets. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly issued a request for public input on portfolio margining and cross-margining frameworks spanning securities, futures, swaps and related products. The agencies said the review is intended to evaluate whether closer alignment of regulatory approaches could improve market efficiency, reduce fragmentation and preserve customer protections. A 60-day public comment window will begin once the request is published in the Federal Register. SEC Chairman Paul Atkins said overlapping regulatory structures should not constrain efficiency or innovation, and noted that cross-margining could help release liquidity currently trapped in separate accounts. The consultation seeks industry feedback across a range of operational and risk-control topics, including collateral treatment, capital requirements, asset segregation, customer protection measures, margin offsets across products, and the margin methodologies used in both securities and derivatives markets. Regulators are also asking for views on current portfolio margining models and prevailing market practices. Clearing infrastructure is another focus. The SEC and CFTC are requesting input on the role of clearing agencies and derivatives clearing organizations, as well as operational and technical hurdles to implementation. Respondents are also asked to address potential effects on market liquidity and competition. CFTC Chairman Mike Selig said deeper cooperation between the agencies on portfolio margining could "unleash untapped capital" while strengthening risk management and market protections, adding that stakeholder feedback will help shape future policy discussions. He reiterated the comment period will remain open for 60 days after Federal Register publication.