End-Users May Face Swap Margin Requirements as CFTC, FDIC Split
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U.S. regulators proposed two sets of rules for margin requirements in swap transactions that may force airlines, large manufacturers and other commercial end-users to set aside money to reduce risk in certain trades.
End-users would escape margin requirements in swaps with non-bank dealers or major swap participants under a proposal approved today by the Commodity Futures Trading Commission. A joint proposal released by the Federal Deposit Insurance Corp., Federal Reserve and three other regulators could force end-users to post margin in swaps with banks.