Part 8: The One Business Day Margin Call Requirement under CFTC Regulation §1.44
The BR Derivatives Report
This post is an overview of the “one business day margin call requirement” that applies to separate account customers under CFTC Regulation §1.44, as proposed by the U.S. Commodity Futures Trading Commission (the “CFTC”) on February 20, 2024 (the “Proposed Rule”).
The Proposed Rule seeks to balance the risk mitigation benefits of margin calls with practical limitations resulting from what the CFTC’s proposing release describes as “the mechanics of international payment systems (e.g., time zones and schedules of correspondent banks).”
To read the full post, please visit our BR Derivatives Report blog.