How Do Regulatory Bodies like the CFTC Govern Margin for Cleared Crypto Derivatives?

The CFTC (Commodity Futures Trading Commission) regulates cleared crypto derivatives (futures/options) as commodities. It requires CCPs to adhere to strict risk management standards, including robust margin methodologies (like the use of SPAN), stress testing, and conservative collateral haircuts.

The rules aim to ensure the CCP's financial resilience and protect the market from member defaults.