Distribution of Property of Bankrupt Futures Commission Merchant That Had Participated in a Cross-Margining Program

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The Commodity Futures Trading Commission (Commission) has adopted an additional appendix to its bankruptcy rules to govern the distribution of property where the debtor is a futures commission merchant (FCM) that holds cross-margin (XM) accounts as well as non-XM accounts. This new distributional framework is intended to assure that non-XM customers of such an FCM will not be adversely affected by a shortfall in the pool of XM funds. The new distributional framework will become applicable to each non-proprietary XM program at such time as the relevant clearing organizations submit an amended participant agreement that makes reference to the new distributional framework and such agreement is approved by the Commission.