U.S. Securities & Exchange Commission
SEC Seal
Home | Previous Page
U.S. Securities and Exchange Commission

Speech by SEC Commissioner:
Statement at Open Meeting to Propose Rules Regarding Clearing Agency Standards for Operation and Governance


Commissioner Troy A. Paredes

U.S. Securities and Exchange Commission

Washington, D.C.
March 2, 2011

Thank you, Chairman Schapiro.

I support the recommendation before us to propose rules regarding the registration of clearing agencies and standards for their operation and governance. The rules are being proposed in accordance with Sections 763 and 805 of the Dodd-Frank Act, as well as Section 17A of the Exchange Act.

The proposing release solicits comment on a range of topics and asks a number of specific questions. As always, I look forward to considering the comments we will receive. I am particularly interested in comments that address the following:

  1. whether entities that provide collateral management, trade matching, or tear up services should be required to register as clearing agencies;
  2. how the proposed standards will affect the practices and conduct of clearing agencies as compared to the practices and conduct of clearing agencies under the current regulatory regime;
  3. whether specific regulatory requirements that we are proposing are unduly burdensome or otherwise unwarranted, especially insofar as the proposed clearing agency standards go beyond what international standards currently contemplate;
  4. whether any of the proposed standards – such as those that regulate the conditions that a clearing agency providing central counterparty services can require its members to meet – might inadvertently compromise robust risk management in the name of affording more access to central clearing; and
  5. whether any of the standards should be phased in – such as over time or based on the volume of transactions that a clearing agency clears – so as not to unduly impede entry or erode the commercial viability of providing clearing services.

I join my colleagues in thanking the staff – particularly those from the Division of Trading and Markets – for your hard work on this rulemaking.



Modified: 03/02/2011