Proposed Rule Change Relating to FINRA Rule 4240 (Margin Requirements for Credit Default Swaps)

Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend FINRA Rule 4240 to permit a member to require, with respect to credit default swaps that are security-based swaps (“CDS”) held in an account subject to an approved portfolio margining program, the amount of margin determined by the member’s portfolio margin methodology, subject to specified requirements. In addition, the proposed rule change makes other revisions to FINRA Rule 4240 to clarify and update the rule.

TitleFormat - SizeStatus
Text of Proposed Rule ChangePDF - 116.75 KB
Approval OrderPDF - 208.85 KB