Alert December 21, 2010

CFTC Issues Rule Proposals Regarding Derivatives Clearing Organizations

The CFTC issued a release proposing rules related to (a) establishing the regulatory standards for compliance by derivatives clearing organizations (“DCOs”) with core principles related to compliance, rule enforcement, anti-trust considerations and legal risk, (b) amending and clarifying rules related to submission of DCO applications, transferring DCO registrations and submission of DCO rules to establish a portfolio margining program, (c) codifying the statutory requirements contained in Section 725(b) of the Dodd‑Frank Act for chief compliance officers (“CCOs”) and setting forth additional provisions relating to CCOs and (d) updating the definitions of “clearing member” and “clearing organization” and adding definitions for certain other terms.  Comments on the proposals are due by February 11, 2011.