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124 STAT. 1690 PUBLIC LAW 111–203—JULY 21, 2010

‘‘(ii) HOLDING OF FUNDS AND ASSETS.—Each deriva- tives clearing organization shall hold member and participant funds and assets in a manner by which to minimize the risk of loss or of delay in the access by the derivatives clearing organization to the assets and funds. ‘‘(iii) PERMISSIBLE INVESTMENTS.—Funds and assets invested by a derivatives clearing organization shall be held in instruments with minimal credit, market, and liquidity risks. ‘‘(G) DEFAULT RULES AND PROCEDURES.— ‘‘(i) IN GENERAL.—Each derivatives clearing organization shall have rules and procedures designed to allow for the efficient, fair, and safe management of events during which members or participants— ‘‘(I) become insolvent; or ‘‘(II) otherwise default on the obligations of the members or participants to the derivatives clearing organization. ‘‘(ii) DEFAULT PROCEDURES.—Each derivatives clearing organization shall— ‘‘(I) clearly state the default procedures of the derivatives clearing organization; Public ‘‘(II) make publicly available the default rules information. of the derivatives clearing organization; and ‘‘(III) ensure that the derivatives clearing organization may take timely action— ‘‘(aa) to contain losses and liquidity pres- sures; and ‘‘(bb) to continue meeting each obligation of the derivatives clearing organization. ‘‘(H) RULE ENFORCEMENT.—Each derivatives clearing organization shall— ‘‘(i) maintain adequate arrangements and resources for— ‘‘(I) the effective monitoring and enforcement of compliance with the rules of the derivatives clearing organization; and ‘‘(II) the resolution of disputes; ‘‘(ii) have the authority and ability to discipline, limit, suspend, or terminate the activities of a member or participant due to a violation by the member or participant of any rule of the derivatives clearing organization; and Reports. ‘‘(iii) report to the Commission regarding rule enforcement activities and sanctions imposed against members and participants as provided in clause (ii). ‘‘(I) SYSTEM SAFEGUARDS.—Each derivatives clearing organization shall— ‘‘(i) establish and maintain a program of risk anal- ysis and oversight to identify and minimize sources of operational risk through the development of appro- LAWS priate controls and procedures, and automated sys- tems, that are reliable, secure, and have adequate scal- able capacity;PUBLIC with on anorris VerDate Nov 24 2008 12:08 Aug 19, 2010 Jkt 089139 PO 00000 Frm 00316 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203