Speech by SEC Commissioner:
Statement at Open Meeting to Propose
Rules Regarding Clearing Agency Standards for Operation and
Governance
by
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:
- whether entities that provide collateral management, trade matching,
or tear up services should be required to register as clearing agencies;
- 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;
- 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;
- 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
- 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.