In a speech before the IDX 2015 conference in London last week, Timothy Massad, Chairman of the Commodity Futures Trading Commission, suggested that the CFTC might apply a hybrid approach in connection with margin requirements for US swap dealers executing over-the-counter transactions with certain non-US counterparties. Under his proposal, US swap dealers (and non-US swap dealers whose swap obligations are guaranteed by a US person) would apply foreign requirements in connection with margin they post with the non-US counterparties, but apply US requirements in connection with margin they receive. Under Mr. Massad’s proposal it appears that, for purposes of determining whether a firm is guaranteed, “if the financial results and position of the non-US swap dealer are consolidated in the financial statements of the US parent then we should take that into account, whether or not there is an explicit guarantee.” The CFTC proposed margin rules for uncleared swaps during September 2014. (Click here for more details 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.) Separately, last week, the European Supervisory Authorities sought public comment on proposed regulatory standards on certain aspects of the European Market Infrastructure Regulation, mainly the amount of initial and variation margin counterparties should exchange in connection with OTC derivatives, as well as the criteria for acceptable collateral. Comments are due by July 10, 2015.