CCC Releases Recommendations for the Re-Authorization of the Commodity Exchange Act

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Responding to a request from the Chairwoman and Raking Member of the Senate Committee on Agriculture, Nutrition and Forestry, the CCC released its recommendations for the re-authorization of the Commodity Exchange Act.  The CCC recommendations include the following:

  • Codify a first priority right for customers over all assets of an insolvent FCM's estate;
  • Require that FCM residual financial interest in the customer segregated account be held in a separate but related account;
  • Establish a specific criminal penalty for segregation violations;
  • Increase the severity of civil monetary penalties for segregation violations;
  • Provide for a Customer's Committee to represent the interests of customers in bankruptcy proceedings;
  • Establish a separate account class for retail forex customers;
  • Establish a separate account class for alternative segregation arrangements;
  • Give the CFTC the authority to determine the appropriate liquidation proceeding for an insolvent FCM;
  • Examine whether or not the CEA excludes the National Futures Association ("NFA") from using a portion of its member assessments for a customer protection fund; and
  • Give the CFTC authority to bring criminal prosecutions.

Download the complete document below.

Download (PDF, 320KB)

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About John Roe 86 Articles
Co-Founder of the CCC and head of BTR Trading and Roe Capital Management.

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