To amend the Commodity Exchange Act to provide certainty for futures customers and market participants, and for other purposes.

Bill: 116-hr-4333
Sponsor: full_name: Rep. Spanberger, Abigail Davis [D-VA-7]
Introduced: 2019-09-13
Policy area: Finance and Financial Sector
Subjects: Administrative remedies

Banking and financial institutions regulation

Bankruptcy

Business records

Commodities markets

Commodity Futures Trading Commission
Latest action: action_date: 2019-09-25
text: Referred to the Subcommittee on Commodity Exchanges, Energy, and Credit.

Summaries:
action_date: 2019-09-13
action_desc: Introduced in House
text: <p>This bill allows the Commodities and Futures Trading Commission (CFTC) to consider certain property as customer property for purposes of distribution priority in the event of bankruptcy of a commodities broker. Specifically, the CFTC may provide by rule that cash, securities, or other property including trading or operating accounts of the broker and commodities held in inventory by the broker are considered customer property, but only if other customer property is insufficient to satisfy the net equity claims of public customers. </p>

tv_txt: I 116th CONGRESS 1st Session H. R. 4333 IN THE HOUSE OF REPRESENTATIVES September 13, 2019 Ms. Spanberger introduced the following bill; which was referred to the Committee on Agriculture A BILL To amend the Commodity Exchange Act to provide certainty for futures customers and market participants, and for other purposes.

1. Certainty for futures customers and market participants Section 20(a) of the Commodity Exchange Act ( 7 U.S.C. 24(a) ) is amended— (1) by striking and at the end of paragraph (4); (2) by striking the period at the end of paragraph (5) and inserting ; and ; and (3) by adding at the end the following: (6) that cash, securities, or other property of the estate of a commodity broker, including the trading or operating accounts of the commodity broker and commodities held in inventory by the commodity broker, shall be included in customer property, subject to any otherwise unavoidable security interest, or otherwise unavoidable contractual offset or netting rights of creditors (including rights set forth in a rule or bylaw of a derivatives clearing organization or a clearing agency) in respect of such property, but only to the extent that the property that is otherwise customer property is insufficient to satisfy the net equity claims of public customers (as such term may be defined by the Commission by rule or regulation) of the commodity broker. .