CFTC and SEC Invite Public Comment on a Joint Proposal to Align Margin Requirements for Security Futures With Requirements for Similar Financial Products

The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) (together, the Commissions) have approved a joint proposal to align the minimum margin required on security futures with other similar financial products. The proposal would set the minimum margin requirement for security futures at 15 percent of the current market value of each security future. The Commissions have joint rulemaking authority regarding margin requirements for security futures. In 2002, the Commissions adopted rules establishing margin requirements for unhedged security futures products at 20 percent. In light of lower margin requirements that have been established for comparable financial products and the resulting asymmetry, the Commissions have determined that it is appropriate to re-examine the minimum margin required for security futures and are proposing an adjustment.