SEC Proposes to Align Margin Requirements for Security Futures With Requirements for Similar Financial Products

The Securities and Exchange Commission (SEC) announced today that it has proposed to align the minimum margin required on security futures with other similar financial products. The proposal—which, if the CFTC votes in favor of, would be a joint CFTC-SEC proposal—would set the minimum margin requirement for security futures at 15 percent of the current market value of each security future. The SEC and the Commodity Futures Trading Commission (CFTC) (together, 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.