The CFTC has published the final rule imposing requirements on SDs and MSPs with respect to the treatment of collateral posted by their counterparties to margin, guarantee or secure uncleared swaps in the Federal Register. The final rule also includes revisions to ensure that securities held in a portfolio margining account that is a futures or Cleared Swaps Customer Account constitute "customer property," and that the owners of such accounts constitute "customers." The rule will be effective on January 6, 2014. Lofchie Comment: As we had previously commented, the policy that underlies the

The CFTC filed a Complaint against AlphaMetrix, LLC ("AlphaMetrix"), a Chicago-based CPO and CTA, for misappropriating funds belonging to commodity pools it operated and sending false or misleading account statements to at least some of the pool participants. According to the Complaint, AlphaMetrix had agreements with some participants to rebate certain fees by reinvesting the funds in the pools for the participants. However, the CFTC alleged that between at least January 1 and October 31, 2013, AlphaMetrix failed to reinvest at least $2.8 million of the rebates owed to participants and

The SEC has announced the appointment of David A. Glockner as director of the Chicago Regional Office. Mr. Glockner will oversee the Chicago office's enforcement and examination operations covering a nine-state region in the Midwest. He will join the agency in early December. See: SEC Press Release.

The SEC has published a proposed crowdfunding rule in the Federal Register. The proposed rule would provide a framework for the regulation of registered funding portals and brokers that issuers are required to use as intermediaries in the offer and sale of securities pursuant to Securities Act Section 4(a)(6) ("Exempted Transactions"). See: 78 FR 66428. Related news: SEC Issues Proposed Rules to Permit Crowdfunding (Pre-Fed. Reg. Version) (with Delta Strategy Group Summary) (October 23, 2013).

ICE Clear US ("ICUS") announced that it is in the process of applying to the CFTC to become a Subpart C derivatives clearing organization ("DCO"). If approved, the DCO status will allow ICE to retain its status as a qualified central counterparty ("QCCP"). Under the proposed Subpart C regulations pursuant to CFTC Rule 39 ("Derivatives Clearing Organizations"), a DCO must maintain financial resources sufficient to meet its credit exposure to its clearing members, notwithstanding the default of the two clearing members creating the largest aggregate credit exposure, known as "Cover 2." Therefore