The Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) has issued an interpretation on the consistency between Part 39 of CFTC Regulations and the Principles for Financial Market Infrastructures. The CFTC previously has adopted additional regulatory requirements for systemically important derivatives clearing organizations (SIDCOs) and other derivatives clearing organizations (DCOs) that opt in to the additional requirements for SIDCOs. These additional requirements are intended to be consistent with the Principles for Financial Market Infrastructures.
DCR’s interpretation is intended to remove any apparent ambiguity between the CFTC’s Regulations and the Principles for Financial Market Infrastructures, including regulatory requirements related to the following: (1) managing risks associated with exchange-of-value settlement services; (2) managing risks associated with DCO link arrangements; (3) accessing central bank accounts, payment services or custodial services; and (4) conducting due diligence on custodian banks.
DCR’s interpretation is available here.