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    Dcoim Factsheet

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    The Commodity Futures Trading Commission is proposing rules to codify and clarify reporting, recordkeeping, public information and information sharing requirements for derivatives clearing organizations. The Dodd-Frank Act amended these "core principles" for DCOs. The proposed rules establish periodic and event-specific reporting requirements, codify recordkeeping requirements, require DCOs to provide certain financial and operational information to market participants, and codify information sharing provisions.

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    Dcoim Factsheet

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    The Commodity Futures Trading Commission is proposing rules to codify and clarify reporting, recordkeeping, public information and information sharing requirements for derivatives clearing organizations. The Dodd-Frank Act amended these "core principles" for DCOs. The proposed rules establish periodic and event-specific reporting requirements, codify recordkeeping requirements, require DCOs to provide certain financial and operational information to market participants, and codify information sharing provisions.

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    The Commodity Futures Trading Commission is proposing rules to codify and clarify reporting, recordkeeping, public information and information sharing requirements for derivatives clearing organizations. The Dodd-Frank Act amended these "core principles" for DCOs. The proposed rules establish periodic and event-specific reporting requirements, codify recordkeeping requirements, require DCOs to provide certain financial and operational information to market participants, and codify information sharing provisions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    118 views2 pages

    Dcoim Factsheet

    Uploaded by

    MarketsWiki
    The Commodity Futures Trading Commission is proposing rules to codify and clarify reporting, recordkeeping, public information and information sharing requirements for derivatives clearing organizations. The Dodd-Frank Act amended these "core principles" for DCOs. The proposed rules establish periodic and event-specific reporting requirements, codify recordkeeping requirements, require DCOs to provide certain financial and operational information to market participants, and codify information sharing provisions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Commodity Futures Trading Commission

    Office of Public Affairs


    Three Lafayette Centre
    1155 21st Street, NW
    Washington, DC 20581
    www.cftc.gov

    Proposed Rules on Reporting, Recordkeeping, Public Information


    and Information Sharing Requirements for DCOs
    The Commodity Futures Trading Commission (Commission) is proposing rules which codify and clarify the
    reporting, recordkeeping, public information and information-sharing core principles for derivatives clearing
    organizations (DCOs).

    Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)

    Section 731 of the Dodd-Frank Act amends the Commodity Exchange Act (CEA) by amending DCO Core
    Principles J (reporting), K (recordkeeping), L (public information) and M (information sharing).

    Reporting

    The proposed rulemaking has two types of reporting requirements: (1) periodic and (2) event-specific (where the
    reporting requirement is triggered by the occurrence of a specific event).

    (1) Periodic
    • There are 3 time frames for periodic reporting: daily, quarterly and annually.
    • The daily reporting requirement would require certain information regarding margin, cash flows and end-of-
    day positions to be reported to the Commission on a daily basis by the morning of the following business
    day. This requirement would provide the Commission with essential information that a DCO has readily
    available as part of its regular business activities.
    • The quarterly reporting requirement restates the financial resources quarterly reporting requirements that
    were proposed in October (75 FR 63113 (Oct. 14, 2010)).
    • The annual reporting requirements address the chief compliance officer annual compliance report as
    required by the Dodd-Frank Act. They also require that audited year-end financial statements be filed with
    the Commission by each DCO.

    (2) Event-Specific
    • The second category of reporting requirements in this proposed rulemaking relates to event-specific reports.
    Many of these reports can be categorized as relating to either significant financial changes at the DCO or
    problems arising with a clearing member.
    • For example, a DCO would be required to report certain substantial decreases in ownership equity, financial
    resources or working capital.
    • The other category requires a report to the Commission when there are issues ranging from a clearing
    member delaying initial margin payments to a clearing member default.

    Recordkeeping

    Commodity Futures Trading Commission ♦ Office of Public Affairs ♦ 202-418-5080


    The proposed regulations codify the statutory language with additional clarification and specifically require
    maintenance of all records generated pursuant to Part 39 of the Commission’s regulations (governing DCOs). The
    rulemaking also includes a cross-reference to the Commission’s technical and procedural recordkeeping
    requirements in Regulation 1.31.

    Public Information

    The proposed regulations codify the statutory language with additional clarification. The proposed rules would
    require providing and making available certain information to allow market participants to assess the risks associated
    with using the services of the DCO. In particular, the proposed rules would require publicly disclosing information,
    including clearing fees, margin methodology, financial resources, daily trading information, and rules and
    procedures. Certain information would also be required to be made readily available to the public.

    Information Sharing

    The proposed rules would codify the statutory provisions of Core Principle M in substantially the same form.

    Commodity Futures Trading Commission ♦ Office of Public Affairs ♦ 202-418-5080

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