WASHINGTON -- The Commodity Futures Trading Commission is set to vote next Wednesday on some of its final rules that would allow it to collect information from futures firms about affiliated over-the-counter derivatives businesses.
Under these risk assessment rules, the agency would obtain information concerning the activities of futures commission merchant affiliates.
In response to several comments, agency officials said that not all of the proposals will be considered at one time. The agency plans to vote on the risk assessment guidelines in two stages to speed up implementation.
Next week's vote will be on the less controversial parts of the proposals, an official said. The agency will review further the rules pertaining to position reporting and margin calls.
The rules, in general, would give the agency the authority to collect information about the affiliates that are likely to have a material effect on the financial or operational condition of the futures commission merchant.
The proposed rules are aimed at improving the financial oversight of firms that are part of holding company groups in which the groups' activities may affect a futures firm's overall financial condition.
Agency officials have said the less controversial proposals include rules requiring futures commission merchants to provide to the futures trading agency on a regular basis organizational charts, risk management policies, and consolidated financial statements.
The futures trading agency is expected to later lay out the requirements for when firms should notify the commission about certain triggering events that could have a material impact on their financial condition.
The agency's risk assessment guidelines were opened for comment this February.
The proposed program is similar to a risk assessment program established previously by the Securities and Exchange Commission.
Under its risk assessment guidelines, the SEC collects information from broker-dealers with affiliates that engage in derivatives activities.
A number of firms have voiced concerns that the futures trading commission's rules may be too burdensome and duplicative of the SEC requirements.
Staff at the futures trading commission maintain that the agency will continue to consult with the SEC to harmonize risk assessment guidelines and minimize duplication.
