Final CFTC rules on protection of collateral for uncleared swaps and treatment of portfolio margining account in bankruptcy
Section 724(c) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) amended the Commodity Exchange Act (CEA) by adding section 4s(l) of the CEA, which sets forth certain requirements concerning the rights of a counterparty of a swap dealer (SD) or major swap participant (MSP) with respect to the segregation of money, securities or other property used to margin, guarantee or otherwise secure uncleared swaps. These requirements apply only to initial margin.
Section 713(c) of the Dodd-Frank Act amended the CEA by adding section 20(c) of the CEA, which requires the Commodity Futures Trading Commission (CTFC) to exercise its authority to ensure that, in the event of a commodity broker bankruptcy, the securities held in a portfolio margining account carried as a futures account will constitute ‘customer property’ and the owners of such an account will constitute ‘customers’ for purposes of subchapter IV of chapter 7 of the US Bankruptcy Code.
On 30 October 2013, the CFTC adopted a number of rules…
If you are registered and logged in to the site, click on the link below to read the rest of the Debevoise & Plimpton briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Briefings from Debevoise & Plimpton
This client update focuses on the examination priorities that are most relevant to investment advisers to private equity and hedge funds.
Debevoise & Plimption has published its FCPA Update for January 2013. The lead article concerns anti-corruption compliance in 2013.
Analysis from The Lawyer
Shell legal director Peter Rees is switching litigation control away from external counsel to a unified global team of in-housers