Release Number 8312-20

CFTC Unanimously Approves Final Rule for Granting Exemptions from Derivatives Clearing Organization Registration

November 18, 2020

— The Commodity Futures Trading Commission has unanimously approved a final rule establishing a framework for the Commission to grant an exemption from registration as a derivatives clearing organization (DCO) to a clearing organization organized outside of the U.S. for the purpose of clearing proprietary swap transactions for U.S. persons.

Section 5b(h) of the Commodity Exchange Act permits the CFTC to exempt a non-U.S. clearing organization from registration for clearing swaps if the CFTC determines that the clearing organization is subject to comparable, comprehensive supervision and regulation by its home country authorities. The rule codifies the Commission’s existing policies and procedures for granting such exemptions and establishes procedures the Commission can use to modify or terminate an exemption. To date, the CFTC has exempted four non-U.S. clearing organizations from registration.

This final rule is the 31st adopted by the Commission under Chairman Tarbert. It is effective 30 days after publication in the Federal Register.