The U.S. Commodity Futures Trading Commission and the European Commission have declared that their margin requirements for uncleared swaps are equivalent.
The agreement on substituted compliance means swap dealers or major swap participants which comply with one regulator's rules will be deemed to be in compliance with the other's rules.
The two agencies also agreed on a common approach regarding authorized trading venues. The European Commission will look into the adoption of an equivalence decision covering swap execution facilities and designated contract markets, under certain conditions. CFTC staff will propose, and the regulator's chairman will support, its exemption from the swap execution facilities registration requirement of trading venues authorized in accordance with the MiFID II/MiFIR requirements that the European Commission has identified.