Last Thursday CFTC added to the Federal Register proposed rules for OTC-cleared swaps (as in: cleared by Designated Clearing Organizations (DCOs), like CME and ICE-Trust). This is a long read, but is useful for at least one reason. The link below (pdf) includes a sample Statement of Cleared Swaps Customer Segregation Requirements and Funds in Cleared Swaps Customer Accounts under 4D(f) of the Commodity Exchange Act.
Link is here (pdf). See the very bottom, last page.
This is the 1FR report that Derivatives Clearing Members (DCMs) (or FCMs) must produce. Some DCMs and DCOs call the cleared-swaps funds “Sequestered” to differentiate them from Customer Seg Requirements for regulated futures contracts.
This link will be useful to compliance and regulatory staff at DCMs and FCMs that are, or intend to, clear OTC swaps on CFTC-regulated clearinghouses.
John P. Needham
June 6, 2011