The Commodity Futures Trading Commission and the Securities and Exchange Commission issued a joint request for public comment on possible ways to further align portfolio margining rules across securities, security-based swaps, futures, swaps and related positions. The agencies are assessing whether closer coordination could improve risk management efficiency, reduce unnecessary market fragmentation and strengthen customer protections within their respective statutory mandates. The request covers the main building blocks of a more harmonized framework, including current portfolio margining models and practices, customer protection issues, cross-margining and cross-product offsets, and the treatment of capital, segregation and collateral. It also seeks views on risk management and margin methodologies, the role of clearing agencies and derivatives clearing organizations, operational and technical implementation challenges, and possible effects on market liquidity and competition. Comments will be accepted for 60 days after the request is published in the Federal Register.

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