Quiero saber acerca de...

956

Federal Register / Vol. 86, No. 4 / Thursday, January 7, 2021 / Rules and Regulations
exemption from DCO registration on matters of international comity and reciprocity within the regulatory text.
The Commission is declining to specifically condition an exemption from DCO registration on matters of international comity and reciprocity, but only because it believes 39.6b9
as proposed is sufficient for those purposes. As noted in the 2019
Proposal, the Commission could use its discretion under 39.6b9 to advance the goal of regulatory harmonization, consistent with the express directive of Congress that the Commission coordinate and cooperate with foreign regulatory authorities on matters related to the regulation of swaps.33 The recognition that market participants and market facilities in a global swaps market are subject to multiple regulators and potentially duplicative regulations, and can therefore benefit from regulatory harmonization and mutual deference among regulators, underpins the exempt DCO framework. The framework is intended to encourage collaboration and coordination among U.S. and foreign regulators in establishing comprehensive regulatory standards for swaps clearing. In addition, the framework seeks to promote fair competition and a level playing field for all DCOs. As a result, the Commission will consider the degree of deference that a home country regulator extends to the Commissions oversight of U.S. DCOs in determining whether to extend the benefits of exemption from registration to DCOs in that jurisdiction, both at the point of initially exempting a non-U.S. DCO, and in determining whether compliance under that framework should continue.
The Commission is adopting 39.6b9
as proposed renumbered as 39.6b8.
3. Regulation 39.6cGeneral Reporting Requirements The Commission proposed 39.6c to require an exempt DCO to report certain information that would assist the Commission in evaluating the continued eligibility of the exempt DCO for exemption, reviewing the exempt DCOs compliance with any conditions of its exemption, or monitoring the risk of U.S. persons and their affiliates clearing swaps at the exempt DCO.

jbell on DSKJLSW7X2PROD with RULES

33 In
order to promote effective and consistent global regulation of swaps, section 752 of the DoddFrank Act directs the Commission to consult and coordinate with foreign regulatory authorities on the establishment of consistent international standards with respect to the regulation of swaps, among other things. Section 752 of the Dodd-Frank Act, Public Law 111203, 124 Stat. 1376 2010, codified at 15 U.S.C. 8325.

VerDate Sep<11>2014

16:55 Jan 06, 2021

Jkt 253001

Specifically, the Commission proposed 39.6c2i to require that an exempt DCO compile a report as of the end of each trading day, and submit it to the Commission by 10:00 a.m. U.S.
Central time on the following business day, containing with respect to swaps:
A Initial margin requirements and initial margin on deposit for each U.S.
person; and B daily variation margin, separately listing the mark-to-market amount collected from or paid to each U.S. person. However, if a clearing member margins on a portfolio basis its own positions and the positions of its affiliates, and either the clearing member or any of its affiliates is a U.S.
person, the exempt DCO would be required to report initial margin requirements and initial margin on deposit for all such positions on a combined basis for each such clearing member on a combined basis and separately list the mark-to-market amount collected from or paid to each such clearing member, on a combined basis. These requirements are similar to certain reporting requirements applicable to registered DCOs in 39.19c1. These reports will provide the Commission with information regarding the cash flows associated with U.S. persons clearing swaps through exempt DCOs in order to analyze the risks presented by such U.S. persons and to assess the extent to which U.S.
business is being cleared by each exempt DCO.
The Commission proposed 39.6c2iiA and B to require an exempt DCO to compile a report as of the last day of each fiscal quarter, and submit it to the Commission no later than 17 business days after the end of the fiscal quarter, containing the aggregate clearing volume of U.S.
persons during the fiscal quarter, and the average open interest of U.S. persons during the fiscal quarter, respectively. If a clearing member is a U.S. person, this data would include the transactions and positions of the clearing member and all affiliates for which the clearing member clears; if a clearing member is not a U.S.
person, the data would only have to include the transactions and positions of affiliates that are U.S. persons. The Commission proposed 39.6c2iiC
to require that an exempt DCOs quarterly report to the Commission contain a list of U.S. persons and FCMs 34 that are either clearing 34 Such FCMs may or may not be U.S. persons.
The Commission will not require that exempt DCOs provide daily information regarding initial margin requirements, initial margin on deposit, and daily variation margin, or quarterly aggregate clearing volume or average open interest, with respect to swaps, for FCMs that are not U.S. persons unless
PO 00000

Frm 00024

Fmt 4700

Sfmt 4700

members or affiliates of any clearing member, with respect to the clearing of swaps, as of the last day of the fiscal quarter. This information would enable the Commission, in conducting risk surveillance of U.S. persons and swaps markets more broadly, to better understand and evaluate the nature and extent of the cleared swaps activity of U.S. persons.
The Commission proposed paragraphs c2iii through viii of 39.6 to require an exempt DCO to provide information to the Commission upon the occurrence of certain specified events. The Commission proposed 39.6c2iii to require an exempt DCO to provide prompt notice to the Commission regarding any change in its home country regulatory regime that is material to the exempt DCOs continuing observance of the PFMIs or with any requirements set forth in 39.6, or the order of exemption issued by the Commission.
The Commission proposed 39.6c2iv to require an exempt DCO to provide to the Commission, to the extent that it is available to the exempt DCO, any assessment of the exempt DCOs or the home country regulators observance of the PFMIs by a home country regulator or other national authority, or an international financial institution or international organization.35
The Commission proposed 39.6c2v to require an exempt DCO
to provide to the Commission, to the extent that it is available to the exempt DCO, any examination report, examination findings, or notification of the commencement of any enforcement or disciplinary action by a home country regulator.
The Commission proposed 39.6c2vi to require an exempt DCO to provide immediate notice to the Commission of any change with respect to its licensure, registration, or other authorization to act as a clearing organization in its home country.
The Commission proposed 39.6c2vii to require an exempt DCO to provide immediate notice to the Commission in the event of a default as defined by the exempt DCO in its rules by a U.S. person or FCM clearing swaps, including the name of the U.S. person reporting would otherwise be required because such FCMs are affiliates of U.S. persons. However, the Commission has a supervisory interest in receiving information regarding which of its registered FCMs are clearing members or affiliates of clearing members, with respect to the clearing of swaps at an exempt DCO.
35 Such an international organization may include the International Monetary Fund or World Bank.
See PFMIs, 1.33.

E:FRFM07JAR1.SGM

07JAR1