The International Swaps and Derivatives Association has proposed regulatory, capital and operational changes to broaden US cross-margining as Treasury clearing mandates approach. Building on its wider push for CFTC-SEC harmonization, ISDA wants the agencies to replace overlapping approval processes with a joint framework featuring principles-based eligibility criteria, one application, defined timelines and a single set of regulatory requirements. ISDA also urged the agencies to coordinate with prudential regulators so bank capital rules recognize risk offsets achieved through cross-margining. While the latest US Basel III proposal recognizes some cross-product netting, ISDA argues its methodology would still produce disproportionately high capital requirements and has proposed an alternative intended to align capital more closely with risk. The agencies should also assess product eligibility using common economic drivers and stressed relationships, while working with clearing houses and market participants to resolve operational barriers when products are cleared at different venues.
2026-09-09ISDA
International Swaps and Derivatives Association proposes joint CFTC-SEC framework to expand US cross-margining
The International Swaps and Derivatives Association has proposed a joint CFTC-SEC approval framework to expand US cross-margining ahead of Treasury clearing mandates. It also called for capital rules that better recognize portfolio risk offsets and coordinated action to resolve overlapping requirements and operational barriers across clearing houses.