[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR39.3]

[Page 435-437]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 39_DERIVATIVES CLEARING ORGANIZATIONS--Table of Contents
 
Sec.  39.3  Procedures for registration.

    (a) Application Procedures. (1) 180-day review procedures. An 
organization desiring to be registered as a derivatives

[[Page 436]]

clearing organization shall file electronically an application for 
registration with the Secretary of the Commission at its Washington, DC, 
headquarters. Except as provided under the 90-day review procedures 
described in paragraph (a)(3) of this section, the Commission will 
review the application for registration as a derivatives clearing 
organization pursuant to the 180-day timeframe and procedures specified 
in section 6(a) of the Act. The Commission may approve or deny the 
application or, if deemed appropriate, register the applicant as a 
derivatives clearing organization subject to conditions.
    (2) The following must be included:
    (i) The application is labeled as being submitted pursuant to this 
Part 39;
    (ii) The applicant represents that it will operate in accordance 
with the definition of derivatives clearing organization contained in 
section 1a(9) of the Act;
    (iii) The application includes a copy of the applicant's rules;
    (iv) The application demonstrates how the applicant is able to 
satisfy each of the core principles specified in section 5b(c)(2) of the 
Act;
    (v) The applicant submits agreements entered into or to be entered 
into between or among the applicant, its operator/service provider or 
its participants, that will enable the applicant to comply, or 
demonstrate the applicant's ability to comply, with the core principles 
specified in section 5b(c)(2) of the Act. The agreements must identify 
the services that will be provided. If a submitted agreement is not 
final and executed, the application must include evidence which 
constitutes reasonable assurances that such services will be provided as 
soon as operations require;
    (vi) The applicant submits descriptions of system test procedures, 
tests conducted or test results, that will enable the applicant to 
comply, or demonstrate the applicant's ability to comply, with the core 
principles specified in section 5b(c)(2) of the Act; and
    (vii) The applicant identifies with particularity information in the 
application that will be subject to a request for confidential treatment 
and supports that request for confidential treatment.
    (3) Ninety-day review procedures. An organization desiring to be 
registered as a derivatives clearing organization may request that its 
application be reviewed on a 90-day basis and that the applicant be 
registered as a derivatives clearing organization 90 days after the date 
of receipt of the application for registration by the Secretary of the 
Commission. The 90-day period shall begin on the first business day 
(during the business hours defined in Sec.  40.1 of this chapter) that 
the Commission is in receipt of the application. Unless the Commission 
notifies the applicant during the 90-day period that the expedited 
review has been terminated pursuant to Sec.  39.3(b), the Commission 
will register the applicant as a derivatives clearing organization 
during the 90-day period. If deemed appropriate by the Commission, the 
registration may be subject to such conditions as the Commission may 
stipulate.
    (i) The application must include the items described in Sec. Sec.  
39.3(a)(2)(i) through (vi); and
    (ii) The applicant must not amend or supplement the application 
except as requested by the Commission or for correction of typographical 
errors, renumbering or other nonsubstantive revisions, during that 
period.
    (b) Termination of 90-day review. (1) During the 90-day period for 
review pursuant to paragraph (a)(3) of this section, the Commission 
shall notify the applicant seeking registration that the Commission is 
terminating review under this section and will review the proposal under 
the 180-day time period and procedures of Section 6(a) of the Act, if it 
appears to the Commission that the application:
    (i) Is materially incomplete;
    (ii) Fails in form or substance to meet the requirements of this 
part;
    (iii) Raises novel or complex issues that require additional time 
for review; or
    (iv) Is amended or supplemented in a manner that is inconsistent 
with Sec.  39.3(a)(3)(ii).
    (2) This termination notification shall identify the deficiencies in 
the application that render it incomplete, the manner in which the 
application fails to meet the requirements of this part, or the novel or 
complex issues

[[Page 437]]

that require additional time for review. The Commission shall also 
terminate review under this section if requested in writing to do so by 
the applicant.
    (c) Withdrawal of application for registration. An applicant for 
registration may withdraw its application submitted pursuant to 
paragraphs (a)(1) through (2) or (a)(3) of this section by filing with 
the Commission such a request. Withdrawal of an application for 
registration shall not affect any action taken or to be taken by the 
Commission based upon actions, activities, or events occurring during 
the time that the application for registration was pending with the 
Commission.
    (d) Guidance for applicants and registrants. Appendix A to this part 
provides guidance to applicants and registrants on how the core 
principles specified in Section 5b(c)(2) of the Act may be satisfied.
    (e) Reinstatement of dormant registration. Before listing or 
relisting contracts for clearing, a dormant registered derivatives 
clearing organization as defined in Sec.  40.1 of this chapter must 
reinstate its registration under the procedures of paragraph (a)(1) 
through (2) or (a)(3) of this section; provided, however, that an 
application for reinstatement may rely upon previously submitted 
materials that still pertain to, and accurately describe, current 
conditions.
    (f) Request for vacation of registration. A registered derivatives 
clearing organization may vacate its registration under Section 7 of the 
Act by filing electronically such a request with the Commission at its 
Washington, DC headquarters. Vacation of registration shall not affect 
any action taken or to be taken by the Commission based upon actions, 
activities or events occurring during the time that the facility was 
designated by the Commission.
    (g) Delegation of authority. (1) The Commission hereby delegates, 
until it orders otherwise, to the Director of the Division of Clearing 
and Intermediary Oversight or the Director's delegates, with the 
concurrence of the General Counsel or the General Counsel's delegates, 
the authority to notify an applicant seeking designation under Section 
6(a) of the Act that the application is materially incomplete and the 
running of the 180-day period is stayed or that the 90-day review under 
paragraph (a)(3) of this section is terminated.
    (2) The Director of the Division of Clearing and Intermediary 
Oversight may submit to the Commission for its consideration any matter 
which has been delegated in this paragraph.
    (3) Nothing in this paragraph prohibits the Commission, at its 
election, from exercising the authority delegated in paragraph (g)(1) of 
this section.

[71 FR 1966, Jan. 12, 2006]