A New Model For Treating Cleared Swaps Collateral

Law360, New York (February 9, 2012, 3:33 PM EST) -- After the failures of Lehman Brothers and MF Global, market participants should appreciate the importance of understanding the whereabouts of their collateral and all possible competing claims to that collateral — regardless of whether it is posted to support commodities, swaps or futures trading, or held in custody by a prime broker or other financial institution.

While there are a multitude of rules and regulations that govern a customer’s rights in collateral supporting brokerage and trading relationships, including the federal securities laws, the Securities Investor Protection...
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