Federal Register: CFTC Proposes to Simplify Exemptive Process for Foreign Clearing Organizations

The CFTC proposed amendments to codify policies and procedures for a non-U.S. clearing organization to obtain an exemption from registration as a derivatives clearing organization (“DCO”). The amendments were published in the Federal Register. Comments must be received on or before October 12, 2018.

As previously covered, the proposal would amend CFTC Parts 39 and 140, which address procedures for registration as a DCO. The proposal would (i) establish a new rule, CFTC Rule 39.6, that would create a regulatory framework for exempting non-U.S. clearing organizations from DCO registration with the CFTC, (ii) mandate clearing organizations to “observe the principles for financial market infrastructures in all material respects and be in good regulatory standing in its home country” under proposed regulation 39.6(a)(1)(ii), and (iii) obligate that a memorandum of understanding satisfactory to the CFTC be in effect between the agency and the clearing organization’s home country regulator.

Comments are closed.