April 29, 2019

CFTC Proposes to Amend Derivatives Clearing Organization Regulations

Washington, DC — The Commodity Futures Trading Commission (CFTC) today approved a proposed rule to amend certain regulations that apply to derivatives clearing organizations (DCOs) under Part 39 of the CFTC’s regulations. Part 39 implements the statutory core principles for DCOs.

Since the Part 39 regulations were adopted, CFTC staff has worked with DCOs to address questions regarding interpretation and implementation of various requirements in Part 39.  In light of this, the CFTC believes it would be helpful to amend or clarify certain provisions of Part 39 as well as codify staff relief and guidance granted in the interim. 

Additionally, the proposed amendments would, among other things, streamline the registration and reporting process, address certain risk management and reporting obligations, and add new requirements regarding default procedures and event-specific reporting in response to recent events. 

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.

The CFTC is seeking comments on the proposal. The comment period will end 60 days after the proposal is published in the Federal Register. All comments will be posted on the CFTC’s website.