CFTC Amends Three Rules Designed To Protect Customer Funds

The CFTC announced three separate measures designed to improve the protection of customer funds. It approved an order to exempt Federal Reserve Banks that maintain customer accounts for derivatives clearing organizations from liability under the Commodity Exchange Act. The Divisions of Clearing and Risk and Swap Dealer and Intermediary Oversight also issued separate interpretative and no-action letters regarding the use of money market funds by DCOs and futures commission merchants. The exemption facilitates the use of Federal Reserve Banks by DCOs that have been designated by the Financial Stability Oversight Council as systemically important. The exemption permits the Federal Reserve Banks to hold such DCOsâ€" customer funds without being subject to liability under the CEA.