CFTC Division of Swap Dealer and Intermediary Oversight Director Joshua B. Sterling highlighted a number of regulatory issues for swap dealers being considered at the CFTC.
News & Insights
The CFTC adopted a proposed Order to: (i) allow Federal Reserve Banks to hold the customer funds of systemically important derivatives clearing organizations; and (ii) exempt such banks from legal liability under the CEA.
The CFTC issued a final rule and separate interpretive and no-action letters in order to improve the protection of customer funds.
Under a new CFTC proposal, Federal Reserve Banks would be allowed to hold money, securities and property deposited by systemically important derivatives clearing organizations in customer accounts. The CFTC's request for comments on the proposal was published in the Federal Register.
The CFTC Divisions of Clearing and Risk and Swap Dealer and Intermediary Oversight ("Divisions") issued a no-action letter regarding the procedures by which clearing members pledge margin to the relevant clearing corporations. The letter permits some deviation from the procedures otherwise required by CFTC Rule 1.20(d) and Rule 22.5(a). See : CFTC Letter 14-106.