SEC and CFTC Seek Public Input on Coordinated Composite Margin Framework on June 26

According to Foresight News, the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) released a joint announcement on June 26 seeking public input on a coordinated composite margin regulatory framework for securities, security-based swaps, futures, swaps, and related positions. The framework aims to assess whether enhanced regulatory coordination can improve risk management efficiency, reduce market fragmentation, and strengthen customer protection.

SEC Chair Paul Atkins stated that cross-margin mechanisms could unlock liquidity currently dispersed across separate accounts. CFTC Chair Mike Selig noted that enhanced cooperation on composite margins may release unutilized capital while ensuring robust risk management and market safeguards. The public comment period closes 60 days after publication in the Federal Register.