CFTC Finalizes New OTC Derivative Class

Law360, New York (March 31, 2010, 7:49 PM EDT) -- The U.S. Commodity Futures Trading Commission on Wednesday published a final rule creating a separate account class for over-the-counter derivatives, a move it said would permit the extension of certain protections in bankruptcy proceedings.

Under the rule, which will take effect in 30 days, the new class will include derivatives that a futures commission merchant carries for a customer and submits for clearing through a derivatives clearing organization.

The creation of this class would allow protections to be extended during bankruptcy to the positions that customers...
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