CFTC proposed amendments to certain regulations applicable to registered derivatives clearing organizations (DCOs) under Part 30 of the CFTC regulations. The proposed amendments would address certain risk management and reporting obligations, clarify the meaning of certain provisions, simplify processes for registration and reporting, and codify existing staff relief and guidance. In addition, CFTC is proposing technical amendments to certain provisions, including certain delegation provisions, in other parts of its regulations. The comment period on the consultation ends on July 15, 2019.
Part 39 of the CFTC regulations implements the statutory core principles for DCOs. Since the Part 39 regulations were adopted, CFTC has worked with DCOs to address questions on interpretation and implementation of the requirements established in regulations. Therefore, CFTC believes it would be helpful to revise or clarify certain provisions of Part 39 and to codify staff relief or guidance granted in the interim. Additionally, in response to certain recent events, CFTC is proposing new requirements with respect to default procedures and event-specific reporting. CFTC believes these changes will provide greater clarity and transparency for DCOs and DCO applicants and lead to more effective DCO compliance and risk management. In addition to the amendments proposed herein, CFTC requests comment for any other aspects of Part 39 that respondents believe CFTC should clarify or otherwise amend. CFTC has also published statements from the CFTC Chairman J. Christopher Giancarlo and Commissioner Dan M. Berkovitz on the proposed amendments.
This proposal is in keeping with the CFTC’s Project KISS, an agency-wide initiative to adopt appropriate changes and simplify agency rules, regulations, and practices to make them less burdensome, less costly, and more transparent to all market participants. In 2011, CFTC had adopted regulations in Subparts A and B of Part 39 to implement the DCO Core Principles. In 2013, CFTC had adopted regulations in Subpart C of Part 395 to establish additional standards for compliance with the DCO Core Principles for the DCOs that have been designated as systemically important by FSOC in accordance with the Dodd-Frank Act.
Related Link: Federal Register Notice
Comment Due Date: July 15, 2019
Keywords: Americas, US, Banking, Securities, PMI, Derivatives Clearing Organizations, Reporting, Technical Amendments, Project KISS, OTC Derivatives, CFTC
Previous ArticleOCC Updates Booklets of the Comptroller's Handbook
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.