Risk Management Requirements for Derivatives Clearing Organizations

CFTC Dodd-Frank Rulemaking

The CFTC is issuing proposed regulations to establish the regulatory standards for compliance with derivatives clearing organization (DCO) Core Principles C (Participant and Product Eligibility), D (Risk Management), E (Settlement Procedures), F (Treatment of Funds), G (Default Rules and Procedures), and I

(System Safeguards).

For DCOs that are designated by the Financial Stability Oversight Council as systemically important DCOs (SIDCOs), the Commission is proposing heightened standards in the area of system safeguards supporting business continuity and disaster recovery and a provision that would implement the Commission's special enforcement authority over SIDCOs.

The Commission also is proposing certain additional amendments including replacement of the current part 39 appendix A, Application Guidance and Compliance With Core Principles, with an application form for entities seeking to register as DCOs, technical amendments to reorganize part 39 of the Commission's regulations, and amendments to supplement reporting and public information requirements proposed in a previous rulemaking.

Document Number

76 Fed. Reg. 3698

Date

January 20, 2011

Cross References (links may require a Cabinet subscription)

Dodd-Frank Act, Title VIII, Secs 802(b), 804, 805(a), and 807(c)

17 CFR 39