These Sample Provisions for FCM Customer Agreements (the “Sample Provisions”) are a compilation of optional contractual provisions for consideration by market participants should they want to use standardized language in their clearing agreements where an FCM has separate accounts of the same beneficial owner. Drafted by representatives of both FIA and SIFMA AMG, the Sample Provisions are being preliminarily published by FIA and SIFMA AMG to provide all market participants with the opportunity to comment as part of the industry’s efforts to promote compliance with regulatory requirements. Accordingly, these Draft Sample Provisions may be modified and re-published in response to any such comments.
The Sample Provisions are not designed as a stand-alone industry document but are a suggested approach for market participants to consider as they review their clearing agreements for compliance with the CFTC’s Advisory and Limited No-Action Relief #19-17 with respect to the treatment of separate accounts by FCMs and the September 13, 2019 Joint Statement of CFTC DSIO and DCR Directors concerning the treatment of separate accounts of the same beneficial owner. Market participants will need to determine whether, and to what extent, to include any of the suggested provisions in their agreements, and whether additional or modified language is required to demonstrate compliance with CFTC Regulations consistent with their current agreements, documentation or other arrangements.
Please direct any comments to the attention of Allison Lurton of FIA at ALurton@FIA.Org and Jason Silverstein of SIFMA AMG at JSilverstein@sifma.org, no later than September 4, 2020.
