The Commodity Futures Trading Commission has proposed amendments to the definition of “public director” in the Acceptable Practices for Core Principle 15. These acceptable practices set out a safe harbor under which designated contract markets (DCMs) can satisfy their obligations under Core Principle 15 to minimize conflicts of interest in their decision making processes. To qualify for the safe harbor, DCMs are required to have a certain percentage of “public directors” on their boards and certain oversight committees. The proposed amendments would clarify those circumstances under which a person would be considered affiliated with a DCM, and therefore disqualified from serving as a public director for purposes of the safe harbor, by setting out a more objective standard of review.
The proposed rule changes will be open for public comment for 30 days following their publication in the Federal Register.