The Commodity Futures Trading Commission’s Division of Clearing and Risk today announced it is withdrawing CFTC Letter No 16-61, Recovery Plans and Wind-down Plans Maintained by Derivatives Clearing Organizations and Tools for the Recovery and Orderly Wind-down of Derivatives Clearing Organizations, effective immediately.
As stated in the withdrawal letter, because systemically important derivatives clearing organizations and derivatives clearing organizations that elect to be subject to Subpart C of Part 39 of the CFTC’s regulations are already required to maintain viable recovery and wind-down plans that are consistent with the risk management requirements of the Commodity Exchange Act, CFTC regulations, and relevant international standards, the guidance is duplicative and not necessary.
