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Joint AMG-MFA Response to the CFTC Proposal to Amend their Part 190 Bankruptcy Regulations

Summary

SIFMA AMG and MFA provided comments to the CFTC on their proposal to amend the Commission’s bankruptcy regulations contained in Part 190. AMG strongly supported the CFTC’s efforts to comprehensively update Part 190 to reflect current market practices and lessons learned from past commodity broker bankruptcies. However, AMG had some concerns with the proposal. Specifically, AMG is concerned with the authority of the trustee and the Commission in the context of a DCO bankruptcy, regarding customer net equity claims and debtor DCO property, and with respect to the determination of the under-margined status of a customer of a debtor futures commission merchant.

PDF

Submitted To

CFTC

Submitted By

SIFMA AMG, MFA

Related Committee(s)

  • Asset Management

Date

13

July

2020

Excerpt

Submitted via portal

July 13, 2020

Mr. Christopher J. Kirkpatrick
Secretary
Commodity Futures Trading Commission
Three Lafayette Centre 1155 21st Street NW
Washington, DC 20581

Re: Part 190 Bankruptcy Regulations (Proposed Amendments – RIN 3038-AE67)

Dear Mr. Kirkpatrick:

The Securities Industry and Financial Markets Association’s Asset Management Group (“SIFMA AMG”)1 and the Managed Funds Association (“MFA”)2 appreciate the opportunity to provide comments to the Commodity Futures Trading Commission (the “Commission” or the “CFTC”) on its proposal (the “Proposal”)3 to amend the Commission’s bankruptcy regulations contained in part 190 of title 17 of the Code of Federal Regulations (“Part 190”).

We strongly support the Commission’s efforts to comprehensively update Part 190 to reflect current market practices and lessons learned from past commodity broker bankruptcies, as well as its efforts to address, exante, issues that may arise during the course of a derivatives clearing organization (“DCO”) bankruptcy.

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