FIA Comments on CFTC’s Proposed Risk Management Requirements and Governance Requirements for Clearinghouses
RIN 3038-AC98
April 7, 2011
The FIA submitted a comment letter to the CFTC on April 7 in response to the agency's notice of proposed rulemaking establishing risk management requirements for derivatives clearing organizations. The FIA said it believes the CFTC has properly identified many of the responsibilities that DCOs and clearing members must undertake in order to manage the risks of clearing swaps but urged the CFTC to rely on guidance rather than prescriptive rules. The FIA also asked the CFTC to revise a number of specific requirements in the proposed rules. The FIA also recommended that customers should be represented on a clearinghouse board of directors rather than its risk management committee.
Cross References
Dodd-Frank Act, Title VII, Secs. 802(b), 805(a), and 807(c); 17 CFR Part 39; 76 FR 3698