Regulatory Alerts2021-04-13 | 2020-28300Commodity Futures Trading Commission Bankruptcy Regulations
The Commodity Futures Trading Commission issued a final rule comprehensively updating its bankruptcy regulations for commodity brokers to reflect current market practices and lessons from past failures. The amendments introduce new provisions governing the bankruptcy of clearing organizations, grant trustees enhanced discretion to prioritize cost-effective and prompt distributions, and modernize communication and recordkeeping requirements. These changes aim to mitigate systemic risk and protect customers by aligning regulatory frameworks with the evolving technological and structural landscape of the derivatives market.
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