Regulations and Forms Pertaining to Financial Integrity of the Market Place; Margin Requirements for SDs/MSPs

Part 23 of the Commission’s regulations, adopted pursuant to section 4s(e) of the CEA, sets forth minimum capital requirements for swap dealers (“SDs”) and major swap participants (“MSPs”). Part 23 also imposes margin requirements for SDs and MSPs that engage in uncleared swap transactions. The collection reflects the reporting and recordkeeping requirements with which FCMs, SDs, and MSPs must comply in connection with their segregation, capital, and margin requirements. The Commission is adopting amendments to certain of its part 23 regulations that impose minimum capital requirements and financial reporting obligations on SDs and MSPs. Specifically, the amendments include revisions consistent with staff interpretive letter 21-15 to SDs addressing the Tangible Net Worth Capital Approach for calculating capital under Commission regulation 23.101 and no-action letter 21-18 (and its successor no-action letter 23-11) regarding alternative financial reporting by SDs subject to the capital requirements of a prudential regulator. The Commission is also adopting amendments to Commission regulation 23.105 applicable to SDs, in areas including the required timing of certain notifications, the process for approval of subordinated debt for capital, and the revision of financial reporting forms to conform to the rules. The amendments are intended to make it easier for SDs to comply with the Commission’s financial reporting obligations and demonstrate compliance with minimum capital requirements.

The latest form for Regulations and Forms Pertaining to Financial Integrity of the Market Place; Margin Requirements for SDs/MSPs expires 2027-07-31 and is listed under ICR 202403-3038-001.