There has been much talk about protecting customer funds but keeping them in segregated accounts outside of the brokerage house. John Omahen, vice president of post trade derivatives solutions at SunGard, talks about the value in moving customer funds to a clearing house. Such segregation could help not only protect customer funds, but also could create lower financing costs.

Also see — Customer Segregation: A Clear View

Segregated Funds Resources

• Segregated funds on MarketsWiki (link)
• John Omahen on MarketsWiki (links)
• CFTC Proposed Rule: Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations (link)
• CFTC Final Rule: Protection of Cleared Swaps Customer Contracts and Collateral; Conforming Amendments to the Commodity Broker Bankruptcy Provisions (link)
• CFTC Final Rule: Investment of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations, Regulation 1.25 (link)
• A Layman’s Guide to Regulation 1.25 (link)
• CFTC Final Rule: Customer Clearing Documentation, Timing of Acceptance for Clearing, and Clearing Member Risk Management (link)
• Derivatives Clearing Organizations Regulation (link)