CFTC Rule Proposal: Clearing Member Risk Management
|FINAL RULE: This page refers to the proposed rule on clearing member risk management. A final rule was approved at the CFTC Open Meeting, March 20, 2012|
|Final Rule Issue||Effective Date||Compliance Date, Rule 1.73||Compliance Extension, Bunched Orders|
|April 9, 2012||October 1, 2012||June 1, 2013||September 1, 2013|
On July 19, 2011, the CFTC held an open meeting to consider two proposed and three final rules related to the Dodd-Frank Act. One of the proposed rules concerned clearing member risk management registered swap entities.
- establish credit and market risk-based limits based on position size, order size, margin requirements, or similar factors;
- use automated means to screen orders for compliance with the risk-based limits;
- monitor risk limits intra-day and overnight;
- conduct stress tests of all positions in the proprietary account and all positions at least once per week;
- monitor liquidation costs at least once per month; and
- test all lines of credit at least once per quarter.
Related Documents: Fact Sheet, Q&A, Federal Register Document
- Open Meeting on Three Final Rule Proposals and Two Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on July 19, 2011.