Agencies release swap margin guidance

The Federal Reserve Board has issued SR-17-3 and the OCC has issued Bulletin 2017-12 announcing with guidance explaining how supervisors should examine for compliance with the swap margin rule, which established margin requirements for swaps not cleared through a clearinghouse. The guidance explains that the Board and the OCC expect swap entities covered by the rule to prioritize their compliance efforts surrounding the March 1, 2017, variation margin deadline according to the size and risk of their counterparties. The Farm Credit Administration, the FDIC, and the FHFA also administer the final rule for institutions under their jurisdiction, but currently have no swap entities affected by this guidance. However, they support the guidance issued by the Board and the OCC.

The guidance does not apply to community banks with $10 billion or less in total consolidated assets.