CFTC Proposes New DCM and DCO Business Continuity and Disaster Recovery Standards
Co-authored by Christian B. Hennion
The Commodity Futures Trading Commission has published proposed rules that would establish standards for the recovery and resumption of operations by certain designated contract markets (DCMs) and derivatives clearing organizations (DCOs). The proposed standards would apply to DCMs that are determined by the CFTC to be “critical financial markets,” as well as to the DCOs for those markets, and would require any such DCM or DCO to establish and maintain business continuity and disaster recovery plans and resources (including appropriate geographic dispersal of personnel and infrastructure) sufficient to satisfy an objective of resuming trading and clearing operations on a same-day basis.
The comment period for the Notice of Proposed Rulemaking will end 30 days after the publication of the Notice in the Federal Register. A copy of the Notice is available here.
