Report on Risk Management Supervision of Designated Clearing Entities

The CFTC, the SEC, and the Board of Governors of the Federal Reserve System (the Board) released their report on Risk Management Supervision of Designated Clearing Entities under Section 813 of the Dodd-Frank Act.  Section 813 requires that the CFTC and the SEC coordinate with the Board to jointly develop risk management supervision programs for clearing entities that have been identified as systemically important by the Financial Stability Oversight Council (the Council).

Section 813 also requires the CFTC, the SEC, and the Board to make recommendations in four areas:
(1) improving consistency in the DCE oversight programs of the SEC and CFTC,

(2) promoting robust risk management by DCEs,

(3) promoting robust risk management oversight by regulators of DCEs, and

(4)improving regulators’ ability to monitor the potential effects of DCE risk management on the stability of the financial system of the United States.