CFTC proposes to amend derivatives clearing organization regulations

Since the Part 39 regulations were adopted, CFTC staff has worked with DCOs to address questions regarding interpretation and implementation of various requirements in Part 39. In light of this, the CFTC believes it would be helpful to amend or clarify certain provisions of Part 39 as well as codify staff relief and guidance granted in the interim.

This proposal is in keeping with the CFTC’s Project KISS, an agency-wide initiative to adopt appropriate changes and simplify agency rules, regulations, and practices to make them less burdensome, less costly, and more transparent to all market participants.

“As part of Project KISS, the Commission is proposing to revise or delete certain provisions in Part 39. These revisions will improve the clarity of the text, codify staff relief and guidance, and simplify processes for registration or reporting,” said CFTC Chairman Christopher Giancarlo in a statement. “There are also a few new requirements with respect to default procedures and reporting in response to more recent events, such as the launch of bitcoin futures contracts and the Nasdaq Clearing default.  For these reasons, I support this proposal.”

The CFTC is seeking comments on the proposal. The comment period will end 60 days after the proposal is published in the Federal Register. All comments will be posted on the CFTC’s Website.