Commodity Futures Trading Commission: Customer Clearing Documentation, Timing of Acceptance for Clearing, and Clearing Member Risk Management
GAO-12-667R, Apr 25, 2012
GAO reviewed the Commodity Futures Trading Commission's (Commission) new rule on customer clearing documentation, timing of acceptance for clearing, and clearing member risk management. GAO found that (1) the final rule implements new statutory provisions enacted by title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which amended the Commodity Exchange Act (CEA). These rules address: the documentation between a customer and a futures commission merchant that clears on behalf of the customer; the timing of acceptance or rejection of trades for clearing by derivatives clearing organizations and clearing members; and the risk management procedures of futures commission merchants, swap dealers, and major swap participants that are clearing members. The rules are designed to increase customer access to clearing, to facilitate the timely processing of trades, and to strengthen risk management at the clearing member level; (2) the Commission complied with the applicable requirements in promulgating the rule.