Page:United States Statutes at Large Volume 124.djvu/1714

 124 STAT. 1688 PUBLIC LAW 111–203—JULY 21, 2010 organization complies with each core principle described in this paragraph. ‘‘(B) FINANCIAL RESOURCES.— ‘‘(i) IN GENERAL.—Each derivatives clearing organization shall have adequate financial, operational, and managerial resources, as determined by the Commission, to discharge each responsibility of the derivatives clearing organization. ‘‘(ii) MINIMUM AMOUNT OF FINANCIAL RESOURCES.— Each derivatives clearing organization shall possess financial resources that, at a minimum, exceed the total amount that would— ‘‘(I) enable the organization to meet its finan- cial obligations to its members and participants notwithstanding a default by the member or participant creating the largest financial exposure for that organization in extreme but plausible market conditions; and ‘‘(II) enable the derivatives clearing organiza- tion to cover the operating costs of the derivatives clearing organization for a period of 1 year (as calculated on a rolling basis). ‘‘(C) PARTICIPANT AND PRODUCT ELIGIBILITY.— ‘‘(i) IN GENERAL.—Each derivatives clearing organization shall establish— ‘‘(I) appropriate admission and continuing eligibility standards (including sufficient financial resources and operational capacity to meet obliga- tions arising from participation in the derivatives clearing organization) for members of, and partici- pants in, the derivatives clearing organization; and ‘‘(II) appropriate standards for determining the eligibility of agreements, contracts, or transactions submitted to the derivatives clearing organization for clearing. ‘‘(ii) REQUIRED PROCEDURES.—Each derivatives clearing organization shall establish and implement procedures to verify, on an ongoing basis, the compli- ance of each participation and membership require- ment of the derivatives clearing organization. ‘‘(iii) REQUIREMENTS.—The participation and mem- bership requirements of each derivatives clearing organization shall— ‘‘(I) be objective; ‘‘(II) be publicly disclosed; and ‘‘(III) permit fair and open access. ‘‘(D) RISK MANAGEMENT.— ‘‘(i) IN GENERAL.—Each derivatives clearing organization shall ensure that the derivatives clearing organization possesses the ability to manage the risks associated with discharging the responsibilities of the derivatives clearing organization through the use of appropriate tools and procedures. ‘‘(ii) MEASUREMENT OF CREDIT EXPOSURE.—Each derivatives clearing organization shall— ‘‘(I) not less than once during each business day of the derivatives clearing organization,