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    The CFTC finalized a rule removing references to credit ratings from two of its regulations as required by the Dodd-Frank Act. The rule affects FCMs, DCOs, and CPOs. For Regulation 1.49, it adjusts qualifications for non-U.S. banks that can hold customer funds. For Regulation 4.24, it modifies disclosure requirements for CPOs to enhance customer understanding of fund usage. The CFTC consulted with other financial regulators and will continue working towards a uniform credit-worthiness standard.

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    Rcr Qa Final

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    The CFTC finalized a rule removing references to credit ratings from two of its regulations as required by the Dodd-Frank Act. The rule affects FCMs, DCOs, and CPOs. For Regulation 1.49, it adjusts qualifications for non-U.S. banks that can hold customer funds. For Regulation 4.24, it modifies disclosure requirements for CPOs to enhance customer understanding of fund usage. The CFTC consulted with other financial regulators and will continue working towards a uniform credit-worthiness standard.

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    110 views1 page

    RCR Qa Final

    Uploaded by

    MarketsWiki
    The CFTC finalized a rule removing references to credit ratings from two of its regulations as required by the Dodd-Frank Act. The rule affects FCMs, DCOs, and CPOs. For Regulation 1.49, it adjusts qualifications for non-U.S. banks that can hold customer funds. For Regulation 4.24, it modifies disclosure requirements for CPOs to enhance customer understanding of fund usage. The CFTC consulted with other financial regulators and will continue working towards a uniform credit-worthiness standard.

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    Commodity Futures Trading Commission

    Three Lafayette Centre 1155 21st Street, NW Washington, DC 20581 www.cftc.gov

    Office of Public Affairs

    Q & A Final Rule Regarding Removal of References to Credit Ratings from Commission Regulations
    What is the goal of the rulemaking?

    Section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires that the CFTC review its regulations and remove references toand requirements of reliance oncredit ratings. Section 939A further directs that the CFTC substitute such credit ratings references with an alternative standard of credit-worthiness, as appropriate. The rulemaking accomplishes those directives with respect to credit ratings references in Commission Regulations 1.49 and 4.24.
    What registrants are covered by the regulations addressed in the rulemaking?

    The regulations apply to futures commission merchants (FCMs), derivatives clearing organizations (DCOs), and commodity pool operators (CPOs).
    How will the changes set forth in the rulemaking affect the Commissions current regulatory requirements?

    The rulemaking contains amendments to two existing Commission regulations: Regulations 1.49 and 4.24. With respect to Regulation 1.49, the rulemaking will adjust the minimum qualifications that non-U.S. banks are required to satisfy before futures commission merchants and derivatives clearing organizations may deposit customer funds into them. The amendment to Regulation 4.24 will modify the disclosures that commodity pool operators will be required to provide to their customers, in order to enhance customers understanding of how the pool operators are using customer money.
    What is the Commission doing to develop a uniform standard of credit-worthiness?

    The Commission has consulted with the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve, and other federal regulators. We will continue to work with the federal interagency community towards the goal of developing and maintaining uniform standards of credit-worthiness, to the extent feasible, in the future.

    Commodity Futures Trading Commission Office of Public Affairs 202-418-5080

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