CFTC Staff Issues Guidance to Clearinghouses on Recovery Plans and Wind-Down Plans
07/21/2016 03:28 PM EDT
The U.S. Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) today issued guidance to clearinghouses to further the development of Recovery Plans and Wind-down Plans. For clearinghouses, or Derivatives Clearing Organizations (DCOs), the development of these plans is a critical element of risk management and contingency planning to address the extreme circumstances that could threaten DCOs’ viability and financial strength, and is required by CFTC regulations.