OCC Responds to Joint Request for Comment on Further Implementation of Portfolio Margining and Cross-Margining of Securities and Derivatives

On June 30, 2026, the CFTC and SEC jointly issued a Request for Comment on further implementation of portfolio margining and cross-margining of securities and derivatives. The request asked for input on approaches to harmonize the portfolio margining frameworks that apply across securities, security-based swaps, futures, and related positions. The request addresses existing portfolio margining and cross margining implementations. It also specifically requested comments on the potential impacts of portfolio margining to margin requirements, segregation and bankruptcy treatment, and regulatory capital requirements.

On August 31, 2026, OCC submitted a comment letter advocating for the benefits of portfolio margining and cross-margining arrangements. The letter raises the following key points:

• • Portfolio margining reduces the amount of capital that must be posted as collateral, allowing assets to be put to other uses without sacrificing risk management standards.
  • The process for permitting portfolio margining of customer positions across futures and securities is opaque, requires filings with both Commissions, and is subject to often uncertain timelines.
  • OCC believes that the Commissions should undertake a joint rulemaking, as authorized by Section 713 of Dodd-Frank, to establish the requirements for holding futures customer positions in a securities account and securities customer positions in a futures customer account.
  • CFTC and SEC customer protection regulations provide similar protections in key areas, particularly asset segregation and insolvency, therefore the framework would not need to establish new requirements for the treatment of portfolio margined products and could instead rely on the existing regulatory requirements of the relevant account.  

OCC’s full letter is available here.