Derivatives Clearing Organization

Category: Derivatives Clearing Organization

A Derivatives Clearing Organization (DCO) is a financial entity that facilitates the clearing and settlement of derivative transactions, ensuring the fulfillment of contractual obligations between buyers and sellers. DCOs play a critical role in mitigating counterparty risk by becoming the intermediary for both parties in a trade, guaranteeing the performance of the contract even if one party defaults. They are regulated by the Commodity Futures Trading Commission (CFTC) in the U.S. and must adhere to strict standards for risk management, financial resources, and operational capabilities. By providing a structured and secure clearing process, DCOs help maintain market stability, enhance transparency, and protect market participants from systemic risks.

CFTC-PR-8957-24

August 31, 2024

CFTC-PR-8957-24 (Aug. 29, 2024)

CFTC Grants Kalshi Klear LLC DCO Registration

Washington, D.C. — The Commodity Futures Trading Commission announced today it has issued Kalshi Klear LLC (Kalshi) an Order of Registration as a derivatives clearing organization (DCO) under the Commodity Exchange Act (CEA).

PR-8957-24

Date: Aug. 29, 2024

Accessed: Aug. 29, 2024

Source URL: https://www.cftc.gov/PressRoom/PressReleases/8957-24

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CFTC-PR-8957-24

CFTC-PR-8949-24

August 23, 2024

Posted by administrator Agency No-Action Letter Categories CFTC CFTC-24 CFTC-2408 Derivatives Clearing Organization Federal News Sources

CFTC-PR-8949-24 (Aug. 23, 2024)

CFTC Staff Issues No-Action Letter for EU-Based and UK-Based DCOs Regarding Certain Requirements Applicable to DCOs

Washington, D.C. — The Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) today issued a no-action letter to address the applicability of certain CFTC regulations to registered derivatives clearing organizations (DCOs) based in either the European Union (EU) or the United Kingdom (UK).