January 14, 2013
I support the Commission’s order to allow portfolio margining of both swaps and security-based swaps in a cleared swaps customer account. Clearing members already benefit from portfolio margining when clearing credit default swaps. The order facilitates client clearing by allowing customers of clearing members to get similar benefits.
Giving more market participants access to clearing further democratizes the market and lowers costs. It also builds on the benefits of the Commission’s clearing requirement determinations. Client portfolio margining was addressed by Congress in the Dodd-Frank Wall Street Reform and Consumer Protection Act, and it fulfills a recommendation of the 2009 Commodity Futures Trading Commission and Securities and Exchange Commission harmonization report.
Last Updated: January 14, 2013