CFTC creates separate bankruptcy account class for cleared otc derivatives

The Commodity Futures Trading Commission has amended its bankruptcy rules (17 C.F.R. Part 190) to create a new “account class” for cleared over-the-counter (OTC) derivatives for purposes of calculating customer “net equity” and “allowed net equity” in the event of the bankruptcy of a futures commission merchant.

Filed under:
USA, Derivatives, Insolvency & Restructuring, Katten Muchin Rosenman LLP, Bankruptcy, Clearing (finance), Collateral (finance), Commodity broker, Commodity Exchange Act 1936 (USA), US Securities and Exchange Commission, Commodity Futures Trading Commission (USA)
Location:
USA
Firm:
Katten Muchin Rosenman LLP
Modernising the insolvency protections for the operation of financial markets - proposals to reform Part 7 of the 1989 Companies Act

Introduction

On 25 July 2008, HM Treasury published a Consultation Paper entitled Modernising the insolvency protections for the operation of financial markets - proposals to reform Part 7 of the 1989 Companies Act (the Consultation Paper).

Proposals

Filed under:
United Kingdom, Banking, Capital Markets, Insolvency & Restructuring, Norton Rose Fulbright, Clearing (finance), Clearing house (finance), Margin (finance), Liability (financial accounting), Default (finance), HM Treasury (UK), FSA
Location:
United Kingdom
Firm:
Norton Rose Fulbright