September 18, 2015

CFTC Staff Issues Interpretation Regarding Consistency between CFTC Regulations Applicable to Derivatives Clearing Organizations and the Principles for Financial Market Infrastructures

Washington, DC — The U.S. Commodity Futures Trading Commission’s (Commission or CFTC) Division of Clearing and Risk (DCR) today issued an interpretation to clarify the consistency of the Commission’s Part 39 regulations applicable to derivatives clearing organizations (DCOs) with the CPMI-IOSCO Principles for Financial Market Infrastructures (PFMIs) relating to certain risk management standards. These risk management standards address, among other things, risks associated with the following: exchange-of-value settlement services; DCOs’ link arrangements; the requirement to use central bank services (where available and practicable); and requirements regarding the due diligence on custodian banks.

The interpretation aims to assist DCOs that have been designated systemically important (SIDCOs) or that have opted into the enhanced SIDCO regulatory framework (known as Subpart C DCOs) in their understanding of how certain CFTC regulations apply, consistent with the above mentioned risk management standards in the PFMIs.

Last Updated: September 18, 2015