CFTC Proposed Rule on Customer Clearing Restrictions

On July 19, the CFTC proposed a rule preventing swap dealers, major swap participants, and futures commissions merchants from entering into an arrangement with a customer that would disclose the identity of the customer’s original executing counterparty. The proposed rule would also prevent such CFTC registrants from: (i) limiting the number of a customer’s counterparties; (ii) restricting a customer’s position with an individual counterparty; (iii) impairing a customer’s access to execution of a trade on terms that have a reasonable relationship to the best terms available; and (iv) preventing compliance with specified time frames for acceptance of trades into clearing. Comments must be submitted within 60 days of publication in the Federal Register. CFTC Fact Sheet.