Federal Register: Protection of Cleared Swaps Customers Before and After Commodity Broker Bankruptcies

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Gavel.png FINAL RULE: This page refers to the proposed rulemaking on cleared swaps customer protection. The CFTC final rule was issued at its January 11, 2012 open meeting.
Dodd-Frank Timeline, Protection of Cleared Swaps Customers Before And After Commodity Broker Bankruptcies
Proposal Date Comment Deadline Final Rule Issue
December 2, 2010 June 3, 2011 First Qtr. 2012

The ANPRM

The advance notice of proposed rulemaking seeks information and comment from the public and other stakeholders regarding the use of various models by which customers be protected in the event of a broker bankruptcy. Specifically, the commission requests opinions, potential consequences, and other information under several models under consideration, including:

  • an "individual segregation" model regarding each customer’s collateral at all levels;
  • a model that commingles the collateral of multiple customers, but treats customer positions on an individual level;
  • a model that uses the collateral of non-defaulting customers in the case of a default, but only after the exhaustion of other clearinghouse resources; and
  • the current "futures model", which treats an FCM’s customers on an omnibus basis.

The cleared swaps customer collateral proposed rulemaking was subsequently proposed at the CFTC Open Meeting, April 27, 2011.

Related Documents: Fact Sheet, Q&A, and Rule Proposal as it Appeared in the Federal Register


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