Agency Information Collection Activities: Proposed Collection, Comment Request: Governance Requirements for Derivatives Clearing Organizations

In view of the finalization of its rule as regards enhanced governance requirements of Derivative Clearing Organizations, DCOs, (please see EventID 22279 in this context for a detailed description of the new rule), the U.S. Commodity Futures Trading Commission (CFTC) has now published in the Federal Register for public comment the proposed „collection“ of certain information under the final rule.
Specifically, the new rule requires, among others, that
– DCOs develop and maintain written policies and procedures governing the formation and role of each risk advisory working group;
– the discussions and outcomes of meetings of a risk advisory working group be documented;
– DCOs have written policies outlining the consultation process which has to take place between the Board of Directors of a DCO and the new „risk management committee (RMC)“, e.g. on issues such as changes to margin models, default procedures, risk monitoring practices, participation requirements, and the clearing of new products;
– the Board’s consideration and response to the committee’s input be documented; and
– minutes of each RMC meeting be drawn up.
All these requirements pertain to „collections“ and are thus subject of this consultation.
—
Comments may be submitted up to September 11, 2023.