CFTC proposes to amend bankruptcy rules to establish cleared OTC derivatives as a separate account class

The Commodity Futures Trading Commission has proposed to amend its Bankruptcy Rules, 17 CFR Part 190, to establish cleared over-the-counter derivatives as a separate account class for the purpose of calculating “net equity” and “allowed net equity” for each customer in the event of the bankruptcy of a futures commission merchant.

Filed under:
USA, Derivatives, Insolvency & Restructuring, Katten Muchin Rosenman LLP, Bankruptcy, Clearing (finance), Futures contract, Commodity broker, Over-the-counter (finance), Margin (finance), Code of Federal Regulations, US Securities and Exchange Commission, Commodity Futures Trading Commission (USA)
Authors:
Jeffrey M. Werthan , Christina J. Grigorian
Location:
USA
Firm:
Katten Muchin Rosenman LLP