Regulatory Alerts2020-09-24 | 2020-21005Bankruptcy Regulations
The Commodity Futures Trading Commission proposes a revision to its bankruptcy regulations for derivatives clearing organizations to address concerns raised by commenters regarding Qualified Master Netting Agreements. The Commission withdraws previous provisions that would have allowed temporary continued operations during bankruptcy, as these were found to potentially undermine bank capital requirements and netting enforceability. Instead, the agency proposes a limited stay on the termination of contracts for systemically important clearing organizations to facilitate Title II resolution proceedings, contingent on regulatory consistency with netting standards.
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