FINRA Sets Margin Rules For Clearing CDS Trades

Law360, New York (March 18, 2009, 12:00 AM EDT) -- The Financial Industry Regulatory Authority on Wednesday announced a pilot plan to set up margining requirements for credit default swaps that would allow broker-dealer firms registered with the self-regulatory organization to trade the financial instruments on registered clearing facilities.

FINRA made special mention of the CDS clearing facility at the Chicago Mercantile Exchange, which the U.S. Securities and Exchange Commission preliminarily approved on Friday.

The SRO added that the proposed interim pilot program would apply to other registered central clearinghouses for CDS, although the margin requirements...
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