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FEDERAL DEPOSIT INSURANCE CORPORATION
REPORT BULLETIN NO. 5

October 31, 2018

550 Seventeenth Street, N.W.
Washington, D.C. 20429


Supplement Highlights

Margin and Capital Requirements for Covered Swap Entities. The Board of Governors (Board), Office of the Comptroller of the Currency, Treasury (OCC), Federal Deposit Insurance Corporation (FDIC), Farm Credit Administration (FCA), and Federal Housing Finance Agency (FHFA) adopted amendments to their rules establishing minimum margin requirements for registered swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants (Swap Margin Rule). These amendments conform the Swap Margin Rule to rules recently adopted by the Board, the OCC, and the FDIC that impose restrictions on certain qualified financial contracts, including certain non-cleared swaps subject to the Swap Margin Rule (the QFC Rules). Specifically, the final amendments to the Swap Margin Rule conform the definition of ``Eligible Master Netting Agreement'' to the definition of ``Qualifying Master Netting Agreement'' in the QFC Rules. The amendment to the Swap Margin Rule ensures that netting agreements of firms subject to the Swap Margin Rule are not excluded from the definition of ``Eligible Master Netting Agreement'' based solely on their compliance with the QFC Rules. The amendment also ensures that margin amounts required for noncleared swaps covered by agreements that otherwise constitute Eligible Master Netting Agreements can continue to be calculated on a net portfolio basis, notwithstanding changes to those agreements that will be made in some instances by firms revising their netting agreements to achieve compliance with the QFC Rules. In addition, for any noncleared swaps that were ``entered into'' before the compliance dates of the Swap Margin Rules—and which are accordingly grandfathered from application of the rule's margin requirements—the amendments state that any changes to netting agreements that are required to conform to the QFC Rules will not render grandfathered swaps covered by that netting agreement as ``new'' swaps subject to the Swap Margin Rule. 83 Fed. Reg. 50812.

See pages 2872.01–2872.08

Policy Statement on Interagency Notification of Formal Enforcement Actions AGENCIES. The Federal Financial Institutions Examination Council has rescinded its Revised Policy Statement on ``Interagency Coordination of Formal Corrective Action by the Federal Bank Regulatory Agencies'' dated February 20, 1997. To assure ongoing coordination, Board of Governors of the Federal Reserve System; Federal Deposit Insurance Corporation; and Office of the Comptroller of the Currency (OCC), issued this policy statement concerning Federal Banking Agency coordination of formal corrective action. 83 Fed. Reg. 27371.

See page 5075.


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