FIA today filed comments with the Commodity Futures Trading Commission (CFTC) cautioning the CFTC against adopting a supplemental bankruptcy proposal that would establish new rules governing the bankruptcy of Systemically Important Derivatives Clearing Organizations (SIDCOs). Although FIA appreciates the CFTC’s efforts in the supplemental proposal to address concerns raised by the industry with the initial proposal around the protection of closeout netting and supports the CFTC’s general effort to update the Part 190 bankruptcy rules and provide clarity for market participants, significant concerns remain with the narrow provisions at issue in the supplemental proposal. FIA looks forward to continuing to work with the CFTC on this important matter.
