The amendments provide for greater clarity, consistency, efficiency and transparency regarding Clearing House’s existing powers for managing Clearing Member defaults.
Harmonize language in Rulebooks describing existing default management processes.
To make default management process more efficient and reduce the potential costs of liquidation, which reduces risk of losses accruing to Clearing House and participants.
Including in an unprecedented scenario involving multiple, concurrent defaults.
Bolsters legal certainty with respect to actions taken re CFTC’s 17 CFR 190 regulations.
Provides flexibility regarding the decision to convene an Active Default Management Committee (ADMC) when managing the default of a Base OTC Clearing Member.
Red-lined version of amendments available on page 10 of the amendment notice.
Effectiveness
The rule amendments are effective on Nov. 26, 2024.
Nov. 8, 2024 CME CFTC Certification
On Nov. 8, 2024, CME self-certified amendments, requested confidential treatment.
