Regulatory News｜August 3

CFTC approves a proposed rule on governance requirements for DCOs

The Commodity Futures Trading Commission (CFTC) has voted in favor of the proposed rule on governance requirements for derivatives clearing organizations (DCOs). The Commission is proposing several amendments that enhance the Commission’s DCO governance standards and are consistent with recommendations from the Central Counterparty Risk and Governance Subcommittee of the Market Risk Advisory Committee.

Specifically, the proposed regulations require a DCO to establish one or more risk management committees (RMCs) and one or more risk advisory working groups (RWGs). The proposed regulations also prescribe standards related to the composition, activities, and policies and procedures of RMCs and RWGs.?

ESMA and EBA publish guidelines to harmonize the supervisory review and evaluation process of investment firms

The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) published Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) for investment firms. The guidelines aim to harmonize the supervisory practices regarding two aspects.

The SREP Guidelines set out the common process and criteria for the assessment of the main SREP elements, including: business model; governance arrangements and firm-wide controls; risks to capital and capital adequacy; and liquidity risk and liquidity adequacy. The procedures and methodologies of the criteria for the assessment of risks are proportionate to the nature, size and activities of investment firms.

MAS and Google Cloud to catalyze climate FinTech solutions in Asia

The Monetary Authority of Singapore (MAS) and Google Cloud have launched the Point Carbon Zero programme to drive innovation, incubation and scaling of climate finance technology solutions in Asia. The programme aims to leverage climate finance technology solutions to facilitate access to accurate climate-related data for the financial sector to more effectively deploy capital to green and sustainable projects, and to facilitate the expected growth of climate finance technology solutions over the next three years.

To support the programme, Google Cloud will launch the world's first open-source cloud platform dedicated to climate finance, which will facilitate the deployment and financial sector adoption of these climate fintech solutions.

Source: Shanghai International Energy Exchange