On December 14, the Commodity Futures Trading Commission requested comment on proposed amendments submitted by the Chicago Mercantile Exchange Inc. (CME) under CFTC Regulation 40.10.
The proposed amendments would create a new type of clearing membership, the “direct funding participant” (DFP). A DFP would be allowed to clear trades for its own account directly with the CME without becoming a full clearing member. To participate, a DFP’s clearing obligations to the CME must be guaranteed by a clearing member that is registered with the CFTC as a futures commission merchant and entitled to directly clear the relevant products.
Comments should be submitted on or before January 12, 2018 through the CFTC’s Comment Online process.
The CFTC’s press release available here.
The CME’s rule submission is available here.