Regulatory Alerts2011-08-01 | 2011-19362Clearing Member Risk Management
The Commodity Futures Trading Commission proposes rules to implement Title VII of the Dodd-Frank Act by establishing risk management standards for futures commission merchants, swap dealers, and major swap participants acting as clearing members. These regulations require clearing members to implement credit and market risk limits, automated pre-trade screening, and regular stress testing to mitigate systemic risk and ensure financial integrity. The proposal also mandates weekly evaluations of liquidity for margin requirements and monthly assessments of the ability to orderly liquidate positions.
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