Continuation of highlights of the new securities and exchange commissions rules on central counterparty

Here is a continuation of the highlights of the new Securities and Exchange Commission (SEC) rules on central counterparties (CCPs):

Risk Management and Governance

• CCPs must establish and maintain a robust risk management framework that includes:
  • A comprehensive risk assessment and monitoring program
  • A risk appetite statement and risk tolerance framework
  • A stress testing and scenario analysis program
  • A liquidity risk management program
  • A collateral management program
• CCPs must also establish and maintain effective governance structures, including:
  • A board of directors or equivalent governing body
  • A risk committee
  • A compliance committee
  • A audit committee

Clearing and Settlement

• CCPs must establish and maintain a clearing and settlement process that is:
  • Efficient and cost-effective
  • Secure and reliable
  • Scalable and adaptable to changing market conditions
  • Compliant with relevant laws and regulations
• CCPs must also establish and maintain a settlement process that is:
  • Timely and efficient
  • Secure and reliable
  • Scalable and adaptable to changing market conditions
  • Compliant with relevant laws and regulations

Margining and Collateral

• CCPs must establish and maintain a margining and collateral framework that is:
  • Comprehensive and risk-based
  • Transparent and fair
  • Scalable and adaptable to changing market conditions
  • Compliant with relevant laws and regulations
• CCPs must also establish and maintain a collateral management program that is:
  • Comprehensive and risk-based
  • Transparent and fair
  • Scalable and adaptable to changing market conditions
  • Compliant with relevant laws and regulations

Default Management

• CCPs must establish and maintain a default management framework that is:
  • Comprehensive and risk-based
  • Transparent and fair
  • Scalable and adaptable to changing market conditions
  • Compliant with relevant laws and regulations
• CCPs must also establish and maintain a default management process that is:
  • Timely and efficient
  • Secure and reliable
  • Scalable and adaptable to changing market conditions
  • Compliant with relevant laws and regulations

Regulatory Capital and Financial Resources

• CCPs must establish and maintain a regulatory capital framework that is:
  • Comprehensive and risk-based
  • Transparent and fair
  • Scalable and adaptable to changing market conditions
  • Compliant with relevant laws and regulations
• CCPs must also establish and maintain a financial resources framework that is:
  • Comprehensive and risk-based
  • Transparent and fair
  • Scalable and adaptable to changing market conditions
  • Compliant with relevant laws and regulations

Reporting and Disclosure

• CCPs must establish and maintain a reporting and disclosure framework that is:
  • Comprehensive and transparent
  • Timely and efficient
  • Scalable and adaptable to changing market conditions
  • Compliant with relevant laws and regulations
• CCPs must also establish and maintain a reporting and disclosure process that is:
  • Timely and efficient
  • Secure and reliable
  • Scalable and adaptable to changing market conditions
  • Compliant with relevant laws and regulations

Examinations and Enforcement

• The SEC will conduct regular examinations of CCPs to ensure compliance with the new rules and regulations
• The SEC will also have the authority to take enforcement action against CCPs that violate the new rules and regulations

Effective Date

• The new rules and regulations will become effective on [insert date]

Transition Period

• CCPs will have a transition period of [insert time period] to implement the new rules and regulations
• During this time, CCPs will be required to submit a transition plan to the SEC outlining their plans for implementing the new rules and regulations