SEC, CFTC Open Joint Review On Margin Rules

The SEC and CFTC launched a joint public consultation on aligning portfolio margin rules across securities and derivatives markets. The agencies want feedback on cross margining, collateral treatment, risk management and customer protections. The comment window stays open for 60 days after Federal Register publication.

SEC Chair Paul Atkins said cross-margining could unlock liquidity stuck in separate accounts and said harmonizing rules would prevent jurisdictional overlap from blocking innovation. Cross margining lets firms offset positions across different markets, often reducing the collateral needed against hedged trades.

Crypto Derivatives Keep Expanding

The review follows a wave of approvals. The CFTC cleared Bitcoin perpetual futures for Kalshi on May 29 and let Coinbase offer institutional clients access to Deribit options and futures. Kraken later launched its own CFTC-regulated perpetual futures through Bitnomial.

Regulatory Fit Still Debated

CFTC Chair Mike Selig recently said crypto perpetual futures don’t fit naturally alongside traditional commodity markets like agriculture, highlighting the broader challenge of applying old frameworks to new asset classes.