Market endorses 'elegant' CFTC proposal on margin
Legally segregated/operationally commingled approach to margin segregation attracts praise from buy- and sell-side.
The Commodity Futures Exchange Commission (CFTC) today tabled four proposals on segregation for client margin in cleared over-the-counter derivatives trades, and early feedback from the industry indicates a clear front-runner.
The so-called 'legally segregated/operationally commingled' approach, in which clients will have a secured claim for the value of their collateral held in omnibus accounts
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