Why CFTC’s new cleared swaps rules are potentially inadequate

Author: Ryan Bolger | Published: 30 Jan 2012

MF Global's recordkeeping in the years leading up to its insolvency illustrate some potential shortcomings in the Commodity Futures Trading Commission's (CFTC) Protection of Cleared Swaps Customer Contracts and Collateral rule finalised on January 13.

Customer collateral is to be legally separated but operationally comingled (LSOC) under the finalised rule, effective...

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