DCO Core Principles Table 

CLEARING ORGANIZATION CORE PRINCIPLES EXPLANATIONS AND REFERENCES TO RELEVANT

QCEX DOCUMENTS, RULES AND AGREEMENTS

Core Principle A:

Compliance with the core principles. 

The Clearinghouse has resources and rules designed to uphold the 

CFTC’s core principles for derivatives clearing organizations, as 

demonstrated in Exhibits A-1 through A-11. 

Core Principle B: 

Adequate financial, operational, and managerial resources

The Clearinghouse has the financial, operational, and managerial 

resources as demonstrated in Exhibits B-1 through B-4.

Core Principle C:

Appropriate standards for participant and product eligibility

The Clearinghouse has rules for participant standards and product 

eligibility as demonstrated in Exhibits C-1 and C-2.

Core Principle D: 

Adequate and appropriate risk management capabilities

The Clearinghouse has a risk management framework and can 

measure and limit risk as demonstrated in Exhibits D-1 through D-3.

Core Principle E:

Ability to complete settlements on a timely basis under varying 

circumstances

The Clearinghouse will at all times have funds for fully collateralized 

positions and retain records as demonstrated in Exhibit E.

Core Principle F: 

Standards and procedures to protect member and participant funds

The Clearinghouse will keep participant funds in a Member Property 

account in U.S. dollars as demonstrated in Exhibit F.

Core Principle G: 

Efficient and fair default rules and procedures

The Clearinghouse only clears products that are fully collateralized 

as demonstrated in Exhibit G.

Core Principle H: 

Adequate rule enforcement and dispute resolution procedures

The Clearinghouse Rulebook has adequate enforcement and dispute 

resolution procedures as demonstrated in Exhibit H.

Core Principle I: 

Adequate and appropriate systems safeguards, emergency 

procedures, and plan for disaster recovery

The Clearinghouse has extensive system safeguards as 

demonstrated in Exhibit I.
DCO Core Principles Table 

Core Principle J: 

Obligation to provide necessary reports to allow the CFTC to oversee 

clearinghouse activities

The Clearinghouse’s Compliance Manual specifies the reporting 

requirements and will report as provided by Exhibit J.

Core Principle K: 

Maintenance of all business records for five years in a form 

acceptable to the CFTC

The Clearinghouse will keep records as required by Commission 

Regulation 1.31 and detailed in Exhibit K.

Core Principle L: 

Publication of clearinghouse rules and operating procedures

The Clearinghouse will post all public data including rules and 

procedures on its website and will advise once a URL is finalized, as 

detailed in Exhibit L.

Core Principle M: 

Participation in appropriate domestic and international informationsharing agreements

As discussed in Exhibit M, the Clearinghouse does not expect to 

enter any information sharing agreements at this time but will 

cooperate, as necessary.

Core Principle N: 

Avoidance of actions that are unreasonable restraints of trade or 

that impose anti-competitive burdens

The Clearinghouse Rulebook has been designed to avoid anticompetitive behavior as demonstrated in Exhibit N.

Core Principle O: 

Governance arrangements and fitness standards

The Clearinghouse has rules and procedures for governance and 

fitness standards as demonstrated in Exhibit O.

Core Principle P: 

Rules to minimize conflicts of interest in the DCO's decision making 

process, and a process for resolving any conflicts

The Clearinghouse has rules and procedures to address conflicts of 

interest as demonstrated in Exhibit P.

Core Principle Q: 

Composition of governing boards to include market participants

The Clearinghouse has rules that provide for appropriate governing 

boards as described in Exhibit Q.
DCO Core Principles Table 

Core Principle R: 

Well-founded legal framework for the activities of the DCO

Chapter V of the Clearinghouse Rulebook provides for an 

appropriate legal risk framework as described in Exhibit R.