FIA and ISDA have submitted a response to the CFTC proposed rulemaking on provisions to common registered entities. The proposal makes technical amendments to the CFTC rules governing how designated contract markets, derivatives clearing organizations (DCOs) and swap execution facilities certify new rules and products, and the CFTC’s review and processing of such submissions.
FIA and ISDA used the opportunity provided by the consultation to reiterate the request of the FIA “Project KISS” letter to align the process for systemically important designated clearing organizations (SIDCO) and DCO rule submissions deemed to present novel or complex issues.
When the CFTC issues a stay for a DCO rule submission under 40.6, it must also provide a 30-day public comment period. By contrast, the CFTC is not obligated to provide a comment period under Rule 40.10 when staying SIDCO rule submissions are found to be novel or complex.
The response letter asks the CFTC to include a mandatory public comment period in 40.10 for SIDCOs, similar to that provided in 40.6 for DCOs that are not SIDCOs. The letter also supports several other technical features of the proposal.
Read the full response.
