SEC and CFTC Launch Joint Consultation on Unified Cross-Asset Margin Rules

The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have launched a joint public consultation to align portfolio margin rules across securities and derivatives markets. The goal is to reduce fragmentation between frameworks that can apply to similar trading and risk management structures.

The SEC and CFTC are seeking feedback on how cross-margining could work in practice, including collateral treatment, risk management expectations, and customer protections. They also want input on how any changes might affect market liquidity and competition.

Crypto derivatives have been expanding through US-regulated venues tied to both CFTC and SEC oversight, highlighting the need for harmonized margin rules. The consultation comes as exchanges, brokerages, and market makers build cross-venue strategies, and institutional traders manage hedges across multiple product types.