190 Across the Finish Line: CFTC Adopts New Bankruptcy Rules for FCMS and DCOS

This article was authored by Kathryn Trkla and Geoffrey Goodman and originally appeared in The Journal on the Law of Investment & Risk Management Products, Futures & Derivatives Law Report, Vol. 41, Issue 4.

Introduction

On December 8, 2020, the Commodity Futures Trading Commission (“CFTC” or “Commission”) adopted comprehensive revisions to its Part 190 Rules governing a commodity broker bankruptcy (“Part 190 Amendments”), by unanimous vote of the Commissioners. These significant revisions enhance customer protection, modernize the rules and bring greater clarity and transparency to the process for liquidating a futures commission merchant (“FCM”) or derivatives clearing organization (“DCO”) in a proceeding under subchapter IV of chapter 7 of the U.S. Bankruptcy Code, 11 U.S.C.A. §§ 101 et seq. (the “Code”).

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