The Commodity Futures Trading Commission issued an order on Aug. 8 exempting Federal Reserve Banks from customer fund segregation requirements under sections 4d and 22 of the Commodity Exchange Act. The order permits Federal Reserve Banks to hold money, securities and property deposited into a customer account by clearinghouses.
CFTC Chairman Tim Massad noted that the use of these accounts, which is permitted by the Dodd-Frank Act, will further ensure the safety of customer funds, and added that the CFTC has been working with the Federal Reserve to facilitate these accounts.
"The two clearinghouses designated as systemically important in our markets have been approved to open Federal Reserve Bank accounts for their proprietary funds," Massad said, referring to clearinghouses operated by CME Group and Intercontinental Exchange. "We hope that with today’s action, accounts for customer funds can be opened soon. Doing so will help protect customer funds and enhance the resiliency of clearinghouses."
