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Proposed Rule

Operational Resilience Framework for Futures Commission Merchants, Swap Dealers, and Major Swap Participants

In Plain English

What is this Federal Register notice?

This is a proposed rule published in the Federal Register by Commodity Futures Trading Commission. Proposed rules invite public comment before becoming final, legally binding regulations.

Is this rule final?

No. This is a proposed rule. It has not yet been finalized and is subject to revision based on public comments.

Who does this apply to?

Consult the full text of this document for specific applicability provisions. The affected parties depend on the regulatory scope defined within.

When does it take effect?

No specific effective date is indicated. Check the full text for date provisions.

📋 Rulemaking Status

This is a proposed rule. A final rule may be issued after the comment period and agency review.

Regulatory History — 3 documents in this rulemaking

  1. Jan 24, 2024 2023-28745 Proposed Rule
    Operational Resilience Framework for Futures Commission Merchants, Swap Deale...
  2. Feb 26, 2024 2024-03826 Proposed Rule
    Operational Resilience Framework for Futures Commission Merchants, Swap Deale...
  3. Sep 11, 2025 2025-17555 Proposed Rule
    Operational Resilience Framework for Futures Commission Merchants, Swap Deale...

Document Details

Document Number2023-28745
TypeProposed Rule
PublishedJan 24, 2024
Effective Date-
RIN3038-AF23
Docket ID-
Text FetchedYes

Agencies & CFR References

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Related Documents (by RIN/Docket)

Doc #TypeTitlePublished
2025-17555 Proposed Rule Operational Resilience Framework for Fut... Sep 11, 2025
2024-03826 Proposed Rule Operational Resilience Framework for Fut... Feb 26, 2024

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Full Document Text (76,421 words · ~383 min read)

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COMMODITY FUTURES TRADING COMMISSION <CFR>17 CFR Parts 1 and 23</CFR> <RIN>RIN 3038-AF23</RIN> <SUBJECT>Operational Resilience Framework for Futures Commission Merchants, Swap Dealers, and Major Swap Participants</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Commodity Futures Trading Commission. <HD SOURCE="HED">ACTION:</HD> Notice of proposed rulemaking. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The Commodity Futures Trading Commission (CFTC or Commission) is proposing to require that futures commission merchants, swap dealers, and major swap participants establish, document, implement, and maintain an Operational Resilience Framework reasonably designed to identify, monitor, manage, and assess risks relating to information and technology security, third-party relationships, and emergencies or other significant disruptions to normal business operations. The framework would include three components—an information and technology security program, a third-party relationship program, and a business continuity and disaster recovery plan—supported by broad requirements relating to governance, training, testing, and recordkeeping. The proposed rule would also require certain notifications to the Commission and customers or counterparties. The Commission is further proposing guidance relating to the management of risks stemming from third-party relationships. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> Comments must be received on or before March 2, 2024. </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> You may submit comments, identified by RIN number 3038-AF23, by any of the following methods: • <E T="03">CFTC Comments Portal: https://comments.cftc.gov.</E> Select the “Submit Comments” link for this rulemaking and follow the instructions on the Public Comment Form. • <E T="03">Mail:</E> Christopher Kirkpatrick, Secretary of the Commission, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. • <E T="03">Hand Delivery/Courier:</E> Follow the same instructions as for Mail, above. Please submit your comments using only one of these methods. Submissions through the CFTC Comments Portal are encouraged. All comments must be submitted in English, or if not, accompanied by an English translation. Comments will be posted as received to <E T="03">https://comments.cftc.gov.</E> You should submit only information that you wish to make available publicly. If you wish the Commission to consider information that you believe is exempt from disclosure under the Freedom of Information Act (FOIA), a petition for confidential treatment of the exempt information may be submitted according to the procedures established in Commission regulation 145.9. <SU>1</SU> <FTREF/> <FTNT> <SU>1</SU>  17 CFR 145.9. The Commission's regulations are found at 17 CFR chapter I (2022). </FTNT> The Commission reserves the right, but shall have no obligation, to review, pre-screen, filter, redact, refuse or remove any or all of your submission from <E T="03">https://comments.cftc.gov</E> that it may deem to be inappropriate for publication, such as obscene language. All submissions that have been redacted or removed that contain comments on the merits of the rulemaking will be retained in the public comment file and will be considered as required under the Administrative Procedure Act and other applicable laws, and may be accessible under the FOIA. <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Amanda L. Olear, Director, at 202-418-5283 or <E T="03">aolear@cftc.gov;</E> Pamela Geraghty, Deputy Director, at 202-418-5634 or <E T="03">pgeraghty@cftc.gov;</E> Fern Simmons, Associate Director, at 202-418-5901 or <E T="03">fsimmons@cftc.gov;</E> Elise Bruntel, Special Counsel, at 202-418-5577 or <E T="03">ebruntel@cftc.gov;</E> Market Participants Division, Commodity Futures Trading Commission, Three Lafayette Centre, 1151 21st Street NW, Washington, DC 20581. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Table of Contents</HD> <EXTRACT> <FP SOURCE="FP-2">I. Introduction</FP> <FP SOURCE="FP-2">II. Proposal</FP> <FP SOURCE="FP1-2">A. Generally—Proposed Paragraph (b)</FP> <FP SOURCE="FP1-2">1. Purpose and Scope; Components—Proposed Paragraphs (b)(1) and (b)(2)</FP> <FP SOURCE="FP1-2">2. Standard—Proposed Paragraph (b)(3)</FP> <FP SOURCE="FP1-2">3. Request for Comment</FP> <FP SOURCE="FP1-2">B. Governance—Proposed Paragraph (c)</FP> <FP SOURCE="FP1-2">1. Approval of Components—Proposed Paragraph (c)(1)</FP> <FP SOURCE="FP1-2">2. Risk Appetite and Risk Tolerance Limits—Proposed Paragraph (c)(2)</FP> <FP SOURCE="FP1-2">3. Internal Escalations—Proposed Paragraph (c)(3)</FP> <FP SOURCE="FP1-2">4. Consolidated Program or Plan—Proposed Paragraph (c)(4)</FP> <FP SOURCE="FP1-2">5. Request for Comment</FP> <FP SOURCE="FP1-2">C. Information and Technology Security Program—Proposed Paragraph (d)</FP> <FP SOURCE="FP1-2">1. Risk Assessment—Proposed Paragraph (d)(1)</FP> <FP SOURCE="FP1-2">2. Effective Controls—Proposed Paragraph (d)(2)</FP> <FP SOURCE="FP1-2">3. Incident Response Plan—Proposed Paragraph (d)(3)</FP> <FP SOURCE="FP1-2">4. Request for Comment</FP> <FP SOURCE="FP1-2">D. Third-Party Relationship Program—Proposed Paragraph (e)</FP> <FP SOURCE="FP1-2">1. Third-Party Relationship Lifecyle Stages—Proposed Paragraph (e)(1)</FP> <FP SOURCE="FP1-2">2. Heightened Requirements for Critical Third-Party Service Providers—Proposed Paragraph (e)(2)</FP> <FP SOURCE="FP1-2">3. Third-Party Service Provider Inventory—Proposed Paragraph (e)(3)</FP> <FP SOURCE="FP1-2">4. Retention of Responsibility—Proposed Paragraph (e)(3)</FP> <FP SOURCE="FP1-2">5. Application to Existing Third-Party Relationships</FP> <FP SOURCE="FP1-2">6. Guidance on Third-Party Relationship Programs—Proposed Paragraph (e)(4); Appendix A to Part 1; Appendix A to Subpart J of Part 23</FP> <FP SOURCE="FP1-2">7. Request for Comment</FP> <FP SOURCE="FP1-2">E. Business Continuity and Disaster Recovery Plan—Proposed Paragraph (f)</FP> <FP SOURCE="FP1-2">1. Definition of “Business Continuity and Disaster Recovery Plan”</FP> <FP SOURCE="FP1-2">2. Purpose—Proposed Paragraph (f)(1)</FP> <FP SOURCE="FP1-2">3. Minimum Contents—Proposed Paragraph (f)(2)</FP> <FP SOURCE="FP1-2">4. Accessibility—Proposed Paragraph (f)(3)</FP> <FP SOURCE="FP1-2">5. Request for Comment</FP> <FP SOURCE="FP1-2">F. Training and Distribution—Proposed Paragraph (g)</FP> <FP SOURCE="FP1-2">G. Review and Testing—Proposed Paragraph (h)</FP> <FP SOURCE="FP1-2">1. Reviews—Proposed Paragraph (h)(1)</FP> <FP SOURCE="FP1-2">2. Testing—Proposed Paragraph (h)(2)</FP> <FP SOURCE="FP1-2">3. Independence—Proposed Paragraph (h)(3)</FP> <FP SOURCE="FP1-2">4. Documentation—Proposed Paragraph (h)(4)</FP> <FP SOURCE="FP1-2">5. Internal Reporting—Proposed Paragraph (h)(5)</FP> <FP SOURCE="FP1-2">6. Request for Comment</FP> <FP SOURCE="FP1-2">H. Required Notifications—Proposed Paragraphs (i) and (j)</FP> <FP SOURCE="FP1-2">1. Commission Notification of Incidents—Proposed Paragraph (i)(1)</FP> <FP SOURCE="FP1-2">2. Commission Notification of BCDR Plan Activation—Proposed Paragraph (i)(2)</FP> <FP SOURCE="FP1-2">3. Notifications to Customers or Counterparties—Proposed Paragraph (j)</FP> <FP SOURCE="FP1-2">4. Request for Comment</FP> <FP SOURCE="FP1-2">I. Amendment and Expansion of Other Provisions in Current Commission Regulation 23.603</FP> <FP SOURCE="FP1-2">1. Emergency Contacts—Proposed Paragraph (k)</FP> <FP SOURCE="FP1-2">2. Recordkeeping—Proposed Paragraph (l)</FP> <FP SOURCE="FP1-2">3. Request for Comment</FP> <FP SOURCE="FP1-2">J. Cross-Border Application for Swap Entities</FP> <FP SOURCE="FP1-2">K. Implementation Period</FP> <FP SOURCE="FP-2">III. Related Matters</FP> <FP SOURCE="FP1-2">A. Regulatory Flexibility Act</FP> <FP SOURCE="FP1-2">B. Paperwork Reduction Act</FP> <FP SOURCE="FP1-2">C. Cost-Benefit Considerations</FP> <FP SOURCE="FP1-2">D. Antitrust Laws</FP> </EXTRACT> <HD SOURCE="HD1">I. Introduction</HD> In 2012 and 2013, the Commission adopted rules requiring that futures commission merchants (FCMs), <SU>2</SU> <FTREF/> swap dealers (SDs)  establish risk management programs (RMPs). <SU>5</SU> <FTREF/> The rules require that SDs and MSPs (together, swap entities) and FCMs design their RMPs to monitor and manage the risks associated with their activities as swap entities or FCMs. <SU>6</SU> <FTREF/> Such risks include, but are not limited to, market, credit, liquidity, segregation, settlement, capital, and operational risk. <SU>7</SU> <FTREF/> Taken together, the RMP rules support a unified Commission objective: to require FCMs and swap entities (collectively, covered entities) to establish comprehensive risk management practices to mitigate systemic risk and promote customer protection. <SU>8</SU> <FTREF/> Recognizing that covered entities vary in size and complexity, the RMP rules identify certain elements that must, at a minimum, be included as part of the RMP, and require that certain risks must be taken into account; but the rules otherwise allow covered entities flexibility to design RMPs tailored to their circumstances and organizational structures. <SU>9</SU> <FTREF/> <FTNT> <SU>2</SU>   <E T="03">See</E> 7 U.S.C. 1a(28), 17 CFR 1.3 (defining “futures commission merchant”). </FTNT> <FTNT> <SU>3</SU>   <E T="03">See</E> 7 U.S.C. 1a(49), 17 CFR 1.3 (defining “swap dealer”). </FTNT> <FTNT> <SU>4</SU>   <E T="03">See</E> 7 U.S.C. 1a(33), 17 CFR 1.3 (defining “major swap participant”).” </FTNT> <FTNT> <SU>5</SU>   <E T="03">See</E> 17 CFR 1.11; 17 CFR 23.600; Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations, 78 FR 68506 (Nov. 14, 2013) (Final FCM ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 559k characters. 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