The FDIC has consolidated a number of resources relating to derivatives.
This webpage will allow users to:
- Review rules and guidance regarding derivatives, including rules implementing various Dodd-Frank Act requirements. (Links to SEC.gov and CFTC.gov)
- Review guidance regarding central clearing of over-the-counter derivatives.
- Browse recent speeches, press releases, and related documents regarding derivatives.
Margin and Capital Requirements for Covered Swap Entities
On October 22, 2015, the Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved a final rule to establish margin requirements for swaps that are not cleared through a clearinghouse.
This action is a joint final rule with the Office of the Comptroller of the Currency, the Federal Reserve Board, the Farm Credit Administration, and the Federal Housing Finance Agency and will apply to entities supervised by these agencies that register with the Commodity Futures Trading Commission (CFTC) or Securities and Exchange Commission (SEC) as a dealer or major participant in swaps. The joint final rule was developed in consultation with the CFTC and the SEC, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The Dodd-Frank Act required the agencies to impose margin requirements to help ensure the safety and soundness of swap dealers in light of the risk to the financial system associated with non-cleared swaps activity. The final rule takes into account the risk posed by a swap dealer's counterparties in establishing the minimum amount of initial and variation margin that the covered swap entity must exchange with such counterparties.
The final rule requires insured depository institutions that are covered swaps entities - the large dealers subject to the rule - to post and collect initial margin on non-cleared swaps entered into with other dealers, and with financial end users that have at least $8 billion, notional, in non-cleared swaps. In addition, the interim final rule exempts swaps with a financial institution that has total assets of $10 billion or less provided that the institution uses the swaps to hedge commercial risk.
The final rule will be phased in beginning September 2016. The interim final rule is effective April 1, 2016. Comments on the interim final rule should be received on or before January 31, 2016.
Retail Foreign Exchange TransactionsThe FDIC issued a final rule that imposes requirements on insured depository institutions (IDIs) that engage in certain retail foreign currency transactions with retail customers. The rule was issued pursuant to section 742(c)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and took effect July 15, 2011.
Counterparty Credit Risk Management GuidanceThe FDIC issued interagency supervisory guidance on Counterparty Credit Risk in mid-2011.