SEC, CFTC Seek Public Comment on the Harmonization of Portfolio Margining Frameworks

The Securities and Exchange Commission and the Commodity Futures Trading Commission jointly requested public comment Thursday on harmonizing portfolio margining frameworks, while the SEC separately sought input on novel exchange-traded funds as the industry surpasses $12 trillion in assets.

The joint request for comment is intended to help the agencies evaluate whether greater coordination in portfolio margining requirements can improve risk management efficiency, reduce market fragmentation, and enhance customer protections, according to a statement from the SEC^[1]. The public comment period will remain open for 60 days following publication in the Federal Register^[1][2].

SEC Chairman Paul S. Atkins said further harmonizing the frameworks can ensure jurisdictional overlap does not stifle innovation and efficiency, adding that cross-margining offers an opportunity to unlock liquidity frozen in separate accounts^[1]. CFTC Chairman Mike Selig said enhanced cooperation promises to unleash untapped capital while ensuring a more robust risk management framework^[1].

The agencies are seeking input on existing portfolio margining models, customer protection considerations, cross-margining and cross-product offsets, capital and collateral treatment, risk management methodologies, clearing agency considerations, operational issues, and potential impacts on market liquidity and competition^[1].

In a separate action, the SEC requested public comment on novel exchange-traded funds, aiming to facilitate innovation while protecting investors^[2]. The ETF market has grown from $4 trillion in 2019 to over $12 trillion at the end of 2025, according to the SEC^[2]. The agency did not specify a comment deadline in its initial announcement.