In a speech before the Third Annual OTC Derivatives Summit North America, Timothy Massad, Chairman of the Commodity Futures Trading Commission, said he expected that the CFTC’s proposed margin rules for uncleared swaps would be finalized by year-end. (Click here for details regarding the CFTC’s proposal in the article “CFTC Proposes Margin Rules for Uncleared Swaps and Approves Special Treatment for Operations-Related Swaps With Certain Government-Owned Natural Gas and Electric Utilities” in the September 21, 2014 edition of Bridging the Week.) In the same speech, Mr. Massad said that recovery and resolution planning for clearinghouses is “at the top of our agenda,” and that the Commission is “stepping up our efforts” to protect against cyber threats and working on a proposal to ensure that “major” clearinghouses, exchanges and swap data repositories are adequately evaluating and testing for cyber threats. Finally, Mr. Massad bemoaned the continued failure of European regulators to recognize US clearinghouses as being under equivalent regulation as European clearinghouses (thus potentially subjecting European banks to a penalty capital haircut to the extent they carry positions, including for their customers, through US clearinghouses). He also argued for banking regulators not to fully penalize banks for their exposure to clearinghouses because of their guarantee of customers’ trades to the extent clients post margin that offsets the amount of the exposure.