CFTC Eases Trading Restrictions For Bankrupt Cos.

Law360, New York (July 29, 2010, 6:07 PM EDT) -- Federal officials have adopted new regulations allowing struggling financial companies to continue handling commodities trading as usual while under bankruptcy protection, in a move that seeks to avert customer losses.

The U.S. Commodities Future Trading Commission announced Thursday that it had adopted an amendment to Regulation 190.04(d)(2) that would allow a bankruptcy trustee, under circumstances the agency deems appropriate, to continue entering into new commodities trades as usual.

The regulation previously prohibited companies or their trustees from processing any new trades under Chapter 11, with very...
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