US SEC and CFTC Solicit Public Comments on Regulatory Framework for Portfolio Margin of Securities, Futures and Other Products

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