Statement of Chairman J. Christopher Giancarlo on Proposed Rule Amendments to Certain Regulations Applicable to Registered Derivatives Clearing Organizations

April 29, 2019

Swaps clearing is among the most sweeping and significant of the swaps reforms adopted by the Dodd-Frank Act.  By any measure, the CFTC’s swaps clearing regime has been robust and highly successful.

In 2011 and 2013, the Commission adopted regulations in Part 39 to implement the Dodd-Frank Act’s Core Principles for Derivatives Clearing Organizations (DCOs).  Since the adoption of these rules, Commission staff has worked with DCOs regarding questions concerning the interpretation and implementation of the regulations, and issued related staff relief or guidance. 

As part of Project KISS, the Commission is proposing to revise or delete certain provisions in Part 39.  These revisions will improve the clarity of the text, codify staff relief and guidance, and simplify processes for registration or reporting.  There are also a few new requirements with respect to default procedures and reporting in response to more recent events, such as the launch of bitcoin futures contracts and the Nasdaq Clearing default.  For these reasons, I support this proposal.