The Commodity Futures Trading Commission (CFTC) recently adopted new Regulation 1.73, Clearing Futures Commission Merchant Risk Management, that imposes certain risk management obligations upon futures commission merchants (FCMs) and non-futures commission merchant (non-FCMs) (See, parallel CFTC Regulation 23.609) clearing members of CME Clearing.
Please be further reminded that CME Clearing requires that Clearing Members maintain written risk management policies and procedures pursuant to CME Rule 982, Risk Management.
CFTC Regulation 1.73 is effective on October 1, 2012. The full text may be found here –
CME Clearing provides tools to assist with clearing members’ compliance with the risk-based limit requirements mandated by CFTC Regulation 1.73. The CME EOS Trader, a web-based front-end system for electronic access to CME Globex, provides the functionality, as well as CME ClearPort, with the RAV Manager functionality. Risk-based limit functionality is also available for OTC products cleared at CME Clearing. Please contact Tim Maher (312) 930-2730 or firstname.lastname@example.org at CME Clearing for additional information regarding these tools.
CME Clearing requests that each clearing member consult with its legal counsel and chief compliance officer to ensure timely adherence to the CFTC’s Regulation 1.73.
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