CFTC Issues New Risk Management Rules For SIDCOs

Law360, New York (August 14, 2013, 5:54 PM EDT) -- The U.S. Commodity Futures Trading Commission on Wednesday said it will adopt enhanced risk management standards for systemically important derivatives clearing organizations, including increased financial resources requirements for SIDCOs with a more complex risk profile or a heightened presence in multiple jurisdictions.

In addition to beefed up financial resources standards, the new regulations will bar SIDCOs from including assessments in calculating their available default resources, and enhance systems safeguards over SIDCOs for business continuity and disaster recovery.

“The adoption of these rules is an important first...
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