Securities Law Updates | New Statutes, Regulations and Rules
August 24, 2010
New CFTC Rule Allows Commodities Brokers in Bankruptcy to Continue Their Usual Operations
Operation, in the Ordinary Course, of a Commodity Broker in Bankruptcy (Amendment to Regulation 190.04(d)(2))
17 CFR Part 190, RIN 3038–AC90, 7/29/2010
The Commodity Futures Trading Commission (“CFTC,” or “Commission”) has adopted an amendment to its regulations regarding the operation of a commodity broker in bankruptcy.
Under appropriate circumstances, as determined by the Commission, the amendment would permit the trustee of a commodity broker in bankruptcy to operate the business of such commodity broker in the ordinary course, including entering into new commodity contracts on behalf of customers.
Currently, Regulation 190.04(d)(2) prohibits a bankruptcy trustee, immediately upon the commencement of the commodity broker’s bankruptcy case, from processing any new trades on behalf of customers (with limited exceptions).
This amendment is intended to more…
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