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Commentary by James McDonnell

In a case involving the ability of a secured creditor to impose obligations on a custodian, SIFMA filed an amicus curiae brief with the Fourth Circuit Court of Appeals urging affirmation of a decision issued by the U.S. District Court for the District of Maryland. The District Court dismissed an action brought by Forest Capital LLC against BlackRock, Inc. related to BlackRock's actions as custodian of assets for People's Power & Gas LLC ("PP&G"). Forest Capital sued BlackRock for releasing funds to PP&G after PP&G instructed BlackRock to make all future payments to Forest Capital. BlackRock

Commentary by Bob Zwirb

The U.S. Bankruptcy Court overseeing the liquidation of failed futures commission merchant MF Global Inc. ("MFGI") has approved a settlement between MFGI and a class of former customers of MFGI for the return of $100 million of customer money to the class. The agreement resolves claims against JP Morgan, and all outstanding matters between JP Morgan and the MF Global estate, its customers and creditors, which arise from transfers of customer property during the days before MF Global entered into bankruptcy. See: Deangelis v. Corzine Settlement Agreement (03-19-2013); Deangelis v. Corzine

Industry representatives met on February 19th to discuss with Gary Gensler, Jacqueline Mesa, and Steven Adamske issues regarding (i) segregation and bankruptcy, and (ii) cross-border. The following organizations were represented. Nomura, RBC, Deutsche Bank, Natisis Commodity Markets, Citigroup, BP, Newedge, Goldman Sachs, ICAP, ICE Futures Europe, CME Europe, Nasdaq OMX, LME, LCH Clearnet, UBS, Jefferies, BNP Paribas, Mizuho Securities USA, FOA, and the U.S. Embassy Click here to view CFTC Staff and all visitors and organizations present (links externally to CFTC website).

Representatives of CME, Morgan Stanley, BNY Mellon, and PIMCO discussed with the CFTC Staff alternative segregation arrangements for cleared swaps customer collateral. Click hereto view CFTC Staff and all visitors present (links externally to CFTC website).