Federal Register: General Regulations and Derivatives Clearing Organizations

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Gavel.png FINAL RULE: This page refers to the proposed rulemaking on core principles and general requirements for DCOs. The CFTC final rule was issued at its October 18, 2011 open meeting.
Dodd-Frank Timeline, Derivative Clearing Organization Definitions, Procedures and Core Principles
Final Rule Issue Effective Date Compliance Date* Compliance Date, Gross Margining
October 18, 2011 January 9, 2012 May 7, 2012 January 14, 2013

The CFTC proposed changes to definitions, procedures, and core principles of derivative clearing organizations (DCOs) at the December 1, 2010 Open Meeting. Specifically:[1]

Definitions

  • customer initial margin
  • initial margin
  • spread margin
  • variation margin
  • margin call
  • back test
  • compliance policies and procedures
  • key personnel
  • stress test
  • systemically important derivatives clearing organization (SIDCO)

Procedural Changes

  • Change current DCO application process review period from 90 to 180 days.
  • Clarify the procedures to be followed by a DCO when requesting a transfer of its DCO registration due to a corporate change.
  • Submission of DCO rules to permit portfolio margining of futures and securities in a futures account.

Core Principles Changes

  • Chief Compliance Officer (CCO) obligations under Dodd-Frank
  • Rule enforcement resource requirement
  • "Legal Risk" requirement mandating DCOs have sufficiently developed, transparent, and consistent legal framework.

Related Documents:Fact Sheet, Q&A, Federal Registry Entry





References

  1. Open Meeting on Sixth Series of Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on February 16, 2011.

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