NFA proposed to amend its financial requirements to conform with a recent no-action letter issued by the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight authorizing futures commission merchants to withdraw excess residual interest from cleared swaps customer accounts prior to a formal next day segregation calculation, as currently required under one of its regulations (click here to access CFTC Rule 22.17(b)). Such withdrawals are authorized in response to margin deposits provided by cleared swaps customers to reduce their undermargined amounts since the firm’s last formal segregation computation – subject to strict conditions. (Click here for details of the CFTC’s no-action letter in the article “CFTC Staff Authorizes Withdrawal of Certain Excess Residual Interest Amounts Prior to Next Day Formal Segregation Computation Subject to Strict Conditions” in the January 29, 2017 edition of Bridging the Week.)