Banks gain no relief from CFTC's variation margin delay

No-action letter will benefit only a dozen or so swaps brokerages and energy firms

Limited effect: CFTC's margin rules only apply to swap dealers not supervised by a prudential regulator

The US Commodity Futures Trading Commission's (CFTC) no-action letter delaying the mandatory exchange of variation margin for non-cleared derivatives, issued on February 13, does not apply to swap dealers supervised by the Federal Reserve or other prudential regulators, which account for the vast majority of swaps trading activity. "This relief only impacts those CFTC-registered swap dealers that are required to comply with the CFTC's uncleared swaps margin rules. The prudential regulators' r