SEC, CFTC Seek Public Comment on the Harmonization of Portfolio Margining Frameworks

The Securities and Exchange Commission and the Commodity Futures Trading Commission today issued a joint request for public comment on harmonizing their portfolio margining rules. Portfolio margining is a risk-based system that lets large financial institutions consolidate positions across securities and derivatives to calculate margin requirements more efficiently. The problem: the SEC and CFTC maintain separate frameworks, creating overlap and added compliance burden for major traders. Today's announcement opens a public comment period on potential ways to align these rules, potentially streamlining operations across markets.

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