The Commodity Futures Trading Commission proposed rules to apply uncleared margin requirements to certain US-based swap dealers and major swap participants and their overseas affiliates that engage in cross-border swap transactions. Under the proposed rules, however, substituted compliance with local uncleared margin requirements judged comparable by the CFTC might be possible for initial margin collected by the non-US entity. The CFTC’s proposed new rules would apply to SDs and MSPs that are not subject to a prudential regulator (e.g., the Board of Governors of the Federal Reserve System) — so-called “Covered Swap Entities” (CSE). In general, where a (1) US-based CSE, or (2) a non-US CSE or subsidiary whose financial statement is consolidated with a US parent (a so-called “Financial Consolidated Subsidiary” (FCS)) and guaranteed by a US person enters into a swap transaction with a non-US person (including non-guaranteed, non-US CSEs or FCSs), substituted compliance may be available for initial margin posted with the non-US entity. Both Commissioners Mark Wetjen and J. Christopher Giancarlo supported issuance of the proposed rules, but voiced concerns regarding elements of the proposal. Comments are due by 60 days after publication of the proposed rules in the Federal Register.