WASHINGTON, June 26, 2026 — The Commodity Futures Trading Commission and the Securities and Exchange Commission have issued a joint request for public comment on potential approaches to further harmonize regulatory frameworks applicable to portfolio margining across securities, security-based swaps, futures, swaps and related positions.
The request for comment is intended to help the agencies evaluate whether greater coordination or alignment in portfolio margining requirements could improve risk management efficiency, reduce unnecessary market fragmentation and enhance customer protections while remaining consistent with each agency’s statutory authorities and responsibilities.
SEC Chairman Paul S. Atkins said greater harmonization could help ensure that jurisdictional overlap does not “stifle innovation and efficiency,” adding that cross-margining offers an opportunity to unlock liquidity held in separate accounts while improving coordination between the two agencies. CFTC Chairman Michael S. Selig said enhanced cooperation on portfolio margining could help “unleash untapped capital while ensuring a more robust risk management framework and market protections.”
Areas under review
The joint request for comment seeks public input on existing portfolio margining models and practices, customer protection considerations, cross-margining and cross-product offsets, capital, segregation and collateral treatment, risk management and margin methodologies, clearing agency and derivatives clearing organization considerations, operational and technical implementation issues, and potential impacts on market liquidity and competition.
The Commissions are also seeking comment on the potential expansion of portfolio margining and cross-margining programs across securities and derivatives, including different account types, additional asset classes, margin methodologies, regulatory and operational challenges, and the potential effects on competition, liquidity and risk management. They encouraged commenters to provide empirical data and quantitative analysis to support their submissions.
Regulatory background
According to the request for comment, financial markets have become increasingly interconnected through global technologies, digital infrastructure and evolving trading models, with market participants increasingly managing related securities and derivatives positions across multiple asset classes. The Commissions said existing regulatory frameworks may in some cases require related positions to be maintained in separate accounts subject to different margin requirements, potentially reducing capital efficiency without necessarily improving market stability.
The agencies said portfolio margining can allow related positions held in a single account to recognize appropriate offsetting exposures, helping align margin requirements more closely with overall portfolio risk. According to the request, that approach may improve collateral efficiency, reduce excess margin calls, support liquidity and facilitate more efficient risk management.
Why it matters
The joint request for comment represents another step in coordination between the SEC and CFTC on securities and derivatives regulation. The agencies are evaluating whether additional harmonization of portfolio margining frameworks could improve market efficiency, reduce unnecessary fragmentation and enhance customer protections while remaining consistent with their respective statutory authorities and responsibilities.
The public comment period will remain open for 60 days following publication of the request for comment in the Federal Register.
