Swap Margin Rule - legacy swaps

The OCC has issued Bulletin 2020-108 concerning the Joint Statement issued by the OCC and Board of Governors of the Federal Reserve System to address the ability of a covered swap entity subject to the OCC’s or Federal Reserve Board’s jurisdiction, respectively, to service the covered swap entity’s cross-border clients. The OCC and the Federal Reserve Board are issuing this statement in light of the approaching end of the transition period during which the laws of the European Union have continued to apply in the United Kingdom after the United Kingdom’s withdrawal (commonly referred to as Brexit) from the European Union. The OCC’s swap margin rule applies to certain national banks, federal savings associations, and federal branches and agencies of foreign banking organizations (collectively, banks).

The OCC expects the Joint Statement to have no impact on community banks.