Protection of Clearing Member Funds Held by Derivatives Clearing Organizations
Commodity Futures Trading Commission published this proposed rule in the Federal Register on Jan 3, 2024. Comments close Feb 16, 2024.
Abstract
The Commodity Futures Trading Commission (CFTC or Commission) is proposing regulations to ensure clearing member funds and assets receive the proper treatment in the event the derivatives clearing organization (DCO) enters bankruptcy by requiring, among other things, that clearing member funds be segregated from the DCO's own funds and held in a depository that acknowledges in writing that the funds belong to clearing members, not the DCO. In addition, the Commission is proposing to permit DCOs to hold customer and clearing member funds at foreign central banks subject to certain requirements. Finally, the Commission is proposing to require DCOs to conduct a daily calculation and reconciliation of the amount of funds owed to customers and clearing members and the amount actually held for customers and clearing members.
The abstract is quoted as the Federal Register publishes it.
Document
- Agency
- Commodity Futures Trading Commission
- Type
- Proposed Rule
- Published
- Jan 3, 2024
- Comments close
- Feb 16, 2024
- Document number
- 2023-28767
- Federal Register
- Read the document
Source: the Federal Register, public domain. All documents.