Regulatory Alerts2023-04-14 | 2023-06248Derivatives Clearing Organization Risk Management Regulations To Account for the Treatment of Separate Accounts by Futures Commission Merchants
The Commodity Futures Trading Commission proposes to amend its derivatives clearing organization risk management regulations to allow clearing futures commission merchants to treat separate accounts of a single customer as accounts of separate entities. This rulemaking establishes specific conditions under which a derivatives clearing organization may permit such separate account treatment to facilitate margin withdrawals without combining funds across a customer's different accounts. The proposal aims to mitigate systemic risk while accommodating industry practices where institutional customers manage distinct investment strategies through separate agreements.
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