SIFMA AMG Statement on CFTC Transition Period for Variation Margin Requirements 

Washington, DC, February 14, 2017 – SIFMA’s Asset Management Group today responded to the Commodity Futures Trading Commission (CFTC) announcement of a six-month transition period for firms to come into compliance with new variation margin requirements. The CFTC’s action does not postpone the March 1 compliance date but rather provides a grace period for firms to comply with new rules.

Kenneth E. Bentsen, Jr., SIFMA president and CEO, stated, “We commend the CFTC and Acting Chairman Giancarlo for taking proactive measures to ensure new variation margin requirements are implemented smoothly without unnecessary negative impact to investors. SIFMA’s asset manager members note that a transition period will enable them to come into compliance with rules without hampering their ability to make important trades that help clients achieve their financial goals.”

Laura Martin, managing director and associate general counsel, SIFMA Asset Management Group, added, “The CFTC’s transition period is a prudent step, recognizing the complexity of complying with variation margin requirements across a range of clients but without having a long-term impact upon the regulatory mandate served by these requirements.  With this action, market participants can focus on the work needed to bring buy side trading relationships into compliance with the new standards while allowing retirement funds, mutual funds and other clients to continue trading during the 6-month grace period.”

SIFMA’s Asset Management Group (SIFMA AMG) members represent U.S. asset management firms whose combined global assets under management exceed $34 trillion. The clients of SIFMA AMG member firms include, among others, tens of millions of individual investors, registered investment companies, endowments, public and private pension funds, UCITS and private funds such as hedge funds and private equity funds.  For more information, visit http://www.sifma.org/amg.

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SIFMA is the voice of the U.S. securities industry. We represent the broker-dealers, banks and asset managers whose nearly 1 million employees provide access to the capital markets, raising over $2.5 trillion for businesses and municipalities in the U.S., serving clients with over $18.5 trillion in assets and managing more than $67 trillion in assets for individual and institutional clients including mutual funds and retirement plans. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.