Margin segregation
As they stand, segregation rules for the cleared over-the-counter derivatives market are a mess. The US Commodity Futures Trading Commission (CFTC) finalised its rules in January, mandating an approach known as legal segregation with operational commingling (Lsoc), but acknowledged as it did so that some clients want tougher protections. Those customers, it said, could rely on a policy the CFTC adopted for futures clearing in 1984.
The policy allowed clients of futures commission merchants (FCMs
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