Final Rules for Clearing Documentation, Timing of Acceptance for Clearing, and Clearing Member Risk Management

5 April 2012
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Key takeaways:

  • The Commodity Futures Trading Commission has recently adopted final rules to implement:
    • the prohibition of certain terms in the documentation between a customer and a futures commission merchant that clears trades on behalf of the customer;
    • the timing of acceptance and rejection of trades for clearing by a derivatives clearing organization and its clearing members; and
    • certain risk management procedures of futures commission merchants, swap dealers and major swap participants that are also clearing members.
  • In general, these rules will become effective on October 1, 2012.