The U.S. Commodity Futures Trading Commission approved the final rule today to segregate customer funds for cleared swaps. The rule is set to prohibit clearing organizations from using collateral of non-defaulting, innocent customers to protect themselves and their clearing members in swap trades.
“For the first time, customer money must be protected individually all the way to the clearinghouse,” said the Commission’s chairman, Gary Gensler, in his opening statement at the meeting today. The rule was passed by a 4-1 vote.
