Requirements for Derivatives Clearing Organizations

Section 5b(a) of the Commodity Exchange Act (“CEA”) provides that a clearing organization may not perform the functions of a derivatives clearing organization (“DCO”) unless the clearing organization is registered with the Commission. In order to register and maintain registration with the Commission, a DCO must comply with the DCO Core Principles and all applicable Commission regulations. This information collection, as a whole, covers the burden associated with Part 39 of the Commission’s regulations applicable to registered DCOs, including requirements related to DCO governance. On July 13, 2023, the Commission adopted the final rule titled “Governance Requirements for Derivatives Clearing Organizations” (“Final Rule”), which amends § 39.24 to require DCOs to establish and consult with one or more risk management committees (“RMCs”) comprised of clearing members and customers of clearing members on matters that could materially affect the risk profile of the DCO. See 88 FR 44675 (Jul. 13, 2023). In addition, the Final Rule sets minimum requirements for RMC composition and rotation, and requires DCOs to establish and enforce fitness standards for RMC members. The Final Rule also adopts requirements for DCOs to maintain written policies and procedures governing the RMC consultation process and the role of RMC members. Finally, the Final Rule requires DCOs to establish one or more market participant risk advisory working groups (“RWGs”) that must convene at least two times per year, and adopt written policies and procedures related to the formation and role of the RWG. The Commission is revising its burden estimate for OMB control number 3038-0076 to account for new information collections set forth in the Final Rule. Specifically, the Commission believes that the burden under this clearance will increase because the 15 DCOs subject to these requirements will be required under § 39.24(b)(11) to create and maintain minutes of each RMC meeting, and under § 39.24(b)(12) to document and provide to the RMC, at a minimum, a summary of the topics discussed and the main points raised during each meeting of the RWG.

The latest form for Requirements for Derivatives Clearing Organizations expires 2026-12-31 and can be found here.