Commodity Futures Trading Commission: Derivatives Clearing Organization General Provisions and Core Principles
GAO-12-233R, Nov 21, 2011
GAO reviewed the Commodity Futures Trading Commission's (Commission) new rule on derivatives clearing organization general provisions and core principles. GAO found that (1) the final rule implements certain provisions of title VII and title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) governing derivatives clearing organization (DCO) activities. More specifically, the rule establishes the regulatory standards for 15 DCO Core Principles: compliance, financial resources, participant and product eligibility, risk management, settlement procedures, treatment of funds, default rules and procedures, rule enforcement, system safeguards, reporting, recordkeeping, public information, information sharing, antitrust considerations, and legal risk; and (2) Commission complied with applicable requirements in promulgating the rule.