Clearing Member Risk Management

Commission regulation § 1.73 which applies to clearing members that are futures commission merchants and Commission regulation § 23.609 which applies to clearing members that swap dealers and major swap participants, require clearing members to monitor and collect information to prevent risks to the financial markets. Specifically, these provisions require these clearing members to have procedures to limit the financial risks they incur as a result of clearing trades and to maintain sufficient liquid resources to meet the obligations that arise. Each of these items has been observed by Commission staff as an element of an existing sound risk management program at these registered entities. The Commission regulations require each clearing member to establish written procedures to comply and to keep records documenting its compliance. The regulations are an important part of the Commission’s regulatory program. The information required to be collected and preserved is used by representatives of the Commission to ensure compliance with the CEA and applicable Commission regulations.

The latest form for Clearing Member Risk Management expires 2028-07-31 and can be found here.