FIA and ISDA Urge Mandatory Comment Period for "Novel" and "Complex" Clearinghouse Rule Changes
FIA and ISDA supported CFTC-proposed amendments to rule-filing requirements that would change the process by which infrastructure providers submit rule filings - including self-certifications and requests for approvals - as well as the manner in which the CFTC reviews and processes these filings. As previously covered, the proposed amendments would apply to market infrastructure providers, including DCMs, DCOs, SEFs and SDRs.
FIA and ISDA described a "key omission" in the proposal as to CFTC Rule 40.10 ("Special certification procedures for submission of rules by systemically important derivatives clearing organizations"). FIA and ISDA urged the CFTC to allow for public comment regarding when an SI-DCO submits a rule for review that the CFTC has determined "raises novel or complex issues." FIA and ISDA argued that this would make the Rule 40.10 approval process for SI-DCOs consistent with the self-certification process for registered entities under CFTC Rule 40.6 ("Self-certification of rules").
The full set of comment letters on the proposal is available here.