On December 10, 2019, the Commodity Futures Trading Commission held an open meeting at which it voted (3-2, with Commissioners Rostin Behnam and Dan Berkovitz dissenting) to reopen the comment period and request additional comment on its 2016 re-proposed rule that would impose capital and liquidity requirements on swap dealers and major swap participants that are not subject to the capital requirements of a prudential regulator.
The release requests comments generally on the prior proposed rule and on a variety of specific topics, which are summarized generally below, including: (1) The calibration of minimum capital requirements for swap dealers, including to take into account initial margin associated with derivatives positions; (2) The regulatory approval process to use an internal model to calculate swap dealer market risk and credit risk capital charges; (3) The application of liquidity requirements to swap dealers; and (4) Financial reporting requirements for swap dealers. Comments on the release are due on or prior to March 3, 2020.