Part 40, Provisions Common to Registered Entities

The Commission is revising control number 3038-0093 in connection with final amendments to the Commission’s regulations under Part 40 (including regulations 40.2, 40.3, 40.4, 40.5, 40.6 and 40.10). Part 40 provides procedures for the submission of rules and rule amendments by registered entities, including designated contract markets, swap execution facilities, derivatives clearing organizations, and swap data repositories. It establishes the procedures for submitting the “written certification” required by Section 5c of the Commodity Exchange Act (“CEA”) in connection with a product or rule certification. The Commission is amending the Part 40 regulations to clarify, simplify, and enhance their utility for market participants and the Commission. Commission staff has observed a trend that some of the submissions under part 40 tend not to include sufficient information. Accordingly, the Commission is adding language clarifying that the submissions must be “complete.” These amendments are likely to modestly increase the PRA reporting burden for registered entities, although some registered entities are already providing the information required under the final rule. While the amendments are not intended to expand or otherwise alter the scope of the current regulation, the Commission conservatively estimates some reporting entities may expend some additional time cognizable under the PRA to ensure the completeness of their submissions. Regulation 40.10 also contains submission procedures for certain risk-related rules proposed by a systemically important derivatives clearing organization (“SIDCO”). The SIDCO regulations require, among other things, 60-days advance notice of proposed rules or rule amendments that may materially affect the nature or level of risks presented by the SIDCO. The SIDCO reporting burden will not be impacted by the amendments.

The latest form for Part 40, Provisions Common to Registered Entities expires 2027-02-28 and can be found here.