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CFTC Sets Comment Deadline on Proposal to Safeguard Clearing Member Funds at DCOs

The CFTC set a comment deadline of February 16, 2024 for a proposed rule to enhance protection of funds and assets owned by clearing members of a Derivative Clearing Organization ("DCO.") The Notice was published in the Federal Register.

The rule requires that DCOs segregate clearing member funds from DCO funds and would mandate daily calculations and reconciliations of funds for customers and clearing members. As previously covered, the proposed CFTC Rule is intended to enhance protection of funds and assets owned by clearing members of a DCO. The rule would require, among other things, that DCOs segregate clearing member funds from DCO funds and would mandate daily calculations and reconciliations of funds for customers and clearing members.

Primary Sources

  1. CFTC Federal Register Filing: Protection of Clearing Member Funds Held by Derivatives Clearing Organizations
  2. CFTC Rule Proposal for Federal Register: Protection of Clearing Member Funds Held by Derivatives Clearing Organizations

Tags

Regulated Activities
Custody
Regulated Entities
Markets
Sub-Entity
Clearing Organizations
Body of Law
CEA Regulation
Jurisdiction
US - Federal
Organization
CFTC, NFA, CFTC Markets
Sub-Author
CFTC