In The Aftermath Of MF Global

Law360, New York (December 20, 2011, 1:35 PM EST) -- The collapse of MF Global has raised a number of concerns primarily in the context of futures but equally likely to apply to cleared over-the-counter derivatives. Clearinghouse standards and the mechanisms for transferring (or "porting") positions and collateral related to cleared swaps are not fully developed and are yet to be tested by a futures commission merchant (FCM) or clearing member insolvency.

In the U.S., the shortfall in customer assets has exposed flaws in the regulatory framework and gaps in the regime for prudential supervision. In...
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