Regulatory Alerts2016-08-12 | 2016-19211Written Acknowledgment of Customer Funds From Federal Reserve Banks
The Commodity Futures Trading Commission amends Regulation 1.20 to remove the requirement that derivatives clearing organizations obtain a written acknowledgment from Federal Reserve Banks regarding the segregation of customer funds. This change aligns with a final exemptive order that relieves Federal Reserve Banks from specific provisions of the Commodity Exchange Act, rendering the previous acknowledgment provisions inapplicable. The amendment ensures that clearinghouses can deposit customer funds at Federal Reserve Banks without conflicting regulatory burdens, thereby enhancing the resiliency of the financial system.
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