On April 29, the Commodity Futures Trading Commission proposed a series of amendments to regulations that apply to derivatives clearing organizations (DCOs) under Part 39 of the CFTC’s regulations, which implements the statutory core principles for DCOs (Rule Proposal). The Rule Proposal is intended, among other things, to streamline the DCO 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. The Rule Proposal is intended to align with the CFTC’s Project KISS, which is an agency-wide initiative to make CFTC rules, regulations and practices less burdensome, less costly and more transparent to all market participants. The comment period for the Rule Proposal will end 60 days after its publication in the Federal Register.
The Rule Proposal is available here.