UNITED STATES: CFTC Extends Public Comment Period for Proposed Rules Pertaining to Cross-Border Clearing

Monday September 16 2019

On 13^th September 2019, the U.S. Commodity Futures Trading Commission announced that it is extending to November 18 the comment period for the proposal for an alternative compliance framework for derivatives clearing organizations (DCOs) organized outside of the United States that do not pose substantial risk to the U.S. financial system.

Under the proposal, these DCOs would be able to register with the CFTC yet comply with the core principles applicable to DCOs in the Commodity Exchange Act through compliance with their home country regulatory regime, subject to certain conditions and limitations. The original comment period for the proposed rule was to expire on September 17.

The CFTC also announced that it is extending to November 22 the comment period for the proposed rule to permit exempt DCOs to clear swaps for U.S. customers under certain circumstances. The proposal would also allow persons located outside of the United States to accept funds from U.S. persons to margin swaps cleared at an exempt DCO, without registering as futures commission merchants. The original comment period for the proposed rule was to expire on September 23.

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