Hedge funds and asset managers will win partial relief fromDodd-Frank Act collateral requirements for credit-default swapsunder a policy shift to be announced this week, according to twopeople briefed on the matter.

The U.S. Securities and Exchange Commission is revising a policyreleased in March that required some clients to put up double thecollateral dealers post at Atlanta-based IntercontinentalExchangeInc., according to the people, who requested anonymity because thedecision isn't public. The relief applies to portfolio accountsthat hold credit swaps tied to single securities as well asindexes.

ICE, owner of the world's largest clearinghouse for creditswaps; Citadel LLC; and other firms have spent more than a yearpushing regulators to support the portfolio-margining system forclient trades. The SEC may require banks temporarily to collectfrom clients collateral equivalent to what's required underclearinghouse rules plus the level required by their own models,according to an e-mail note that the Managed Funds Association sentto members on May 31. The relief would last six months, the notesaid.

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