November 15, 2013

CFTC Issues Final Rules for Derivatives Clearing Organizations to Align with International Standards

Washington, DC — The Commodity Futures Trading Commission (CFTC) today finalized rules to establish additional standards for systemically important derivatives clearing organizations (SIDCOs). The rules were passed unanimously via Seriatim vote by the Commission.

These rules, together with the existing derivatives clearing organizations rules, establish Commission regulations that are consistent with the Principles for Financial Market Infrastructures (PFMIs) and would allow SIDCOs to continue to be Qualifying Central Counterparties for purposes of international bank capital standards. The final rules include substantive requirements relating to governance, financial resources, system safeguards, special default rules and procedures for uncovered losses or shortfalls, risk management, additional disclosure requirements, efficiency, and recovery and wind-down procedures.

In addition, the final rules include procedures by which derivatives clearing organizations other than SIDCOs may elect to become subject to these additional standards.

Last Updated: November 15, 2013