Joint Release/Agencies Finalize Amendments to Swap Margin Rule — 2020-06-25

Board of Governors of the Federal Reserve System Farm Credit Administration Joint Release Federal Deposit Insurance Corporation Federal Housing Finance Agency Office of the Comptroller of the Currency Agencies Finalize Amendments to Swap Margin Rule Five federal agencies have finalized changes to their swap margin rule to facilitate the implementation of prudent risk management strategies at banks and other entities with significant swap activities. Under the final rule, entities that are part of the same banking organization generally will no longer be required to hold a specific amount of initial margin for uncleared swaps with each other, known as inter-affiliate swaps. Inter-affiliate swaps typically are used for internal risk management purposes by transferring risk to a centralized risk management function within the firm. The final rule will give firms additional flexibility to allocate collateral internally and support prudent risk management and safety and soundness.