CFTC’s Proposed Compliance Standards for Certain Core Principles and CCO Requirements for Derivatives Clearing Organizations

By: Lawrence B. Patent

On December 1, 2010, the CFTC proposed regulations under Section 725 of the Dodd-Frank Act that would establish standards by which derivatives clearing organizations (“DCOs”) must demonstrate compliance with certain core principles, as well as requirements for a DCO chief compliance officer, as set forth in Section 5b of the Commodity Exchange Act. The proposed regulations would also make certain technical amendments to other existing CFTC regulations to conform to requirements of the Dodd-Frank Act.

This alert discusses the Dodd-Frank Act’s grant of explicit rulemaking authority to the CFTC concerning DCOs, which could lead to requirements on DCOs beyond those established by the statutory core principles, an expansion of the core principle related to antitrust, as well as a new core principle added by the Dodd-Frank Act regarding legal risk.

Public comment on the proposed regulations may be filed with the CFTC on or before February 11, 2011.

To view the complete alert online, click here.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: