Page:United States Statutes at Large Volume 124.djvu/1713

124 STAT. 1687 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(D) be responsible for administering each policy and procedure that is required to be established pursuant to this section; ‘‘(E) ensure compliance with this Act (including regula- tions) relating to agreements, contracts, or transactions, including each rule prescribed by the Commission under this section; ‘‘(F) establish procedures for the remediation of non- compliance issues identified by the compliance officer through any— ‘‘(i) compliance office review; ‘‘(ii) look-back; ‘‘(iii) internal or external audit finding; ‘‘(iv) self-reported error; or ‘‘(v) validated complaint; and ‘‘(G) establish and follow appropriate procedures for the handling, management response, remediation, re- testing, and closing of noncompliance issues. ‘‘(3) ANNUAL REPORTS.— ‘‘(A) IN GENERAL.—In accordance with rules prescribed by the Commission, the chief compliance officer shall annually prepare and sign a report that contains a descrip- tion of— ‘‘(i) the compliance of the derivatives clearing organization of the compliance officer with respect to this Act (including regulations); and ‘‘(ii) each policy and procedure of the derivatives clearing organization of the compliance officer (including the code of ethics and conflict of interest policies of the derivatives clearing organization). ‘‘(B) REQUIREMENTS.—A compliance report under subparagraph (A) shall— ‘‘(i) accompany each appropriate financial report of the derivatives clearing organization that is required to be furnished to the Commission pursuant to this section; and ‘‘(ii) include a certification that, under penalty of law, the compliance report is accurate and complete.’’. (c) CORE PRINCIPLES FOR DERIVATIVES CLEARING ORGANIZA- TIONS.—Section 5b(c) of the Commodity Exchange Act (7 U.S.C. 7a–1(c)) is amended by striking paragraph (2) and inserting the following: ‘‘(2) CORE PRINCIPLES FOR DERIVATIVES CLEARING ORGANIZA- TIONS.— ‘‘(A) COMPLIANCE.— ‘‘(i) IN GENERAL.—To be registered and to maintain registration as a derivatives clearing organization, a derivatives clearing organization shall comply with each core principle described in this paragraph and any requirement that the Commission may impose by rule or regulation pursuant to section 8a(5). ‘‘(ii) DISCRETION OF DERIVATIVES CLEARING ORGANIZATION.—Subject to any rule or regulation pre- scribed by the Commission, a derivatives clearing organization shall have reasonable discretion in estab- lishing the manner by which the derivatives clearing Certification.