US SEC and CFTC Solicit Public Comments on Regulatory Framework for Portfolio Margins Covering Securities, Futures and Other Related Products

U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) issued a joint announcement seeking public comment on a coordinated regulatory framework for portfolio margin covering securities, security-based swaps, futures, swaps, and related positions. The agencies are evaluating whether enhanced inter-agency regulatory coordination will help improve risk management efficiency, reduce market fragmentation, and strengthen customer protection. SEC Chair Paul Atkins noted that cross-margin mechanisms could unlock liquidity currently held in separate accounts. CFTC Chair Mike Selig added that strengthened inter-agency cooperation on portfolio margin could free up unused capital while ensuring more robust risk management frameworks and market safeguards. The comment period covers topics including current portfolio margin models and practices, customer protection considerations, cross-margin and cross-product hedging, capital/segregation/collateral handling, risk management methodologies, matters related to clearinghouses and derivatives clearing organizations (DCOs), operational and technical implementation issues, and potential impacts on market liquidity and competition. The public comment window will remain open for 60 days following publication in the Federal Register.