17 CFR § 23.702 - Requirements for segregated initial margin.

---
identifier: "/us/cfr/t17/s23.702"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "17 CFR § 23.702 - Requirements for segregated initial margin."
title_number: 17
title_name: "Commodity and Securities Exchanges"
section_number: "23.702"
section_name: "Requirements for segregated initial margin."
chapter_name: "COMMODITY FUTURES TRADING COMMISSION"
part_number: "23"
part_name: "SWAP DEALERS AND MAJOR SWAP PARTICIPANTS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "7 U.S.C. 1a, 2, 6, 6a, 6b, 6b-1, 6c, 6p, 6r, 6s, 6t, 9, 9a, 12, 12a, 13b, 13c, 16a, 18, 19, 21."
regulatory_source: "77 FR 2628, Jan. 19, 2012, unless otherwise noted."
cfr_part: "23"
---


# 23.702 Requirements for segregated initial margin.

(a) The custodian of Initial Margin, segregated pursuant to an election under § 23.701, must be a legal entity independent of both the swap dealer or major swap participant and the counterparty.

(b) Initial Margin that is segregated pursuant to an election under § 23.701 must be held in an account segregated for, and on behalf of, the counterparty, and designated as such. Such an account may, if the swap dealer or major swap participant and the counterparty agree, also hold Variation Margin.

(c) Any agreement for the segregation of Initial Margin pursuant to this section shall be in writing, shall include the custodian as a party, and shall provide that any instruction to withdraw Initial Margin shall be in writing and that notification of the withdrawal shall be given immediately to the non-withdrawing party.