Page:United States Statutes at Large Volume 114 Part 5.djvu/438

 114 STAT. 2763A-398 PUBLIC LAW 106-554—APPENDIX E "(F) TREATMENT OF FUNDS. —The applicant shall have standards and procedures designed to protect and ensure the safety of member and participant funds. " (G) DEFAULT RULES AND PROCEDURES.—The applicant shall have rules and procedures designed to allow for efficient, fair, and safe management of events when members or participants become insolvent or otherwise default on their obligations to the derivatives clearing organization. " (H) RULE ENFORCEMENT. —The applicant shall— "(i) maintain adequate arrangements and resources for the effective monitoring and enforcement of compliance with rules of the applicant and for resolution of disputes; and "(ii) have the authority and ability to discipline, limit, suspend, or terminate a member's or participant's activities for violations of rules of the applicant. "(I) SYSTEM SAFEGUARDS.—The applicant shall demonstrate that the applicant— "(i) has established and will maintain a program of oversight and risk analysis to ensure that the automated systems of the applicant function properly and have adequate capacity and security; and "(ii) has established and will maintain emergency procedures and a plan for disaster recovery, and will periodically test backup facilities sufficient to ensure daily processing, clearing, and settlement of transactions. "(J) REPORTING.— The applicant shall provide to the Commission all information necessary for the Commission to conduct the oversight function of the applicant with respect to the activities of the derivatives clearing organization. "(K) RECORDKEEPING.— The applicant shall maintain records of all activities related to the business of the applicant as a derivatives clearing organization in a form and manner acceptable to the Commission for a period of 5 years. "(L) PUBLIC INFORMATION.—The applicant shall make information concerning the rules and operating procedures governing the clearing and settlement systems (including default procedures) available to market participants. "(M) INFORMATION-SHARING.—The applicant shall— "(i) enter into and abide by the terms of all appropriate and applicable domestic and international information-sharing agreements; and "(ii) use relevant information obtained from the agreements in carrying out the clearing organization's risk management program. "(N) ANTITRUST CONSIDERATIONS.— Unless appropriate to achieve the purposes of this Act, the derivatives clearing organization shall avoid— "(i) adopting any rule or taking any action that results in any unreasonable restraint of trade; or "(ii) imposing any material anticompetitive burden on trading on the contract market. "(3) ORDERS CONCERNING COMPETITION.—^A derivatives clearing organization may request the Commission to issue

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