SEC and CFTC Seek Input on Unified Portfolio Margin Rules

The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have launched a joint public consultation to harmonize portfolio margin rules across securities and derivatives markets. The agencies are seeking feedback on approaches that could expand cross-margining and reduce market fragmentation.

According to SEC Chair Paul Atkins, 'cross-margining offers a clear opportunity to unlock liquidity that remains frozen in separate accounts.' This would allow companies to post less collateral against hedged positions because margin is based on the portfolio's overall risk rather than each position in isolation.

The joint review reflects the growing need for coordinated oversight as crypto exchanges and brokerages increasingly operate across both markets. The public comment period will remain open for 60 days after the request is published in the Federal Register.