CFTC proposes new account class for OTC derivatives
The Commodity Futures Trading Commission on Thursday proposed creating a new account class for over-the-counter derivatives.
The new class would include derivatives that a futures commission merchant carries for a customer and submits for clearing through a derivatives clearing organization.
The CFTC said the purpose of creating a new account would allow protections to be extended during a bankruptcy to the positions that customers of a futures commission merchant hold in cleared OTC derivatives and the collateral that such customers deposit to secure such positions.
The CFTC said the proposal also clarifies the appropriate allocation of positions and collateral during bankruptcy.
The CFTC proposal will be open for public comment for 30 days after it is published in the government's Federal Register.
(Reporting by Christopher Doering)
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