The CFTC continues to monitor the commodity futures markets following recent developments, including the announcement that Barclays Capital Inc. has made an offer to purchase substantially all of the North American businesses and operating assets of Lehman Brothers Inc. (LBI). LBI is the regulated broker-dealer/futures commission merchant subsidiary of Lehman Brothers Holdings Inc., and the Barclays Capital Inc. offer includes LBI’s business as a futures commission merchant (FCM).
“The CFTC has been working closely with Federal and international regulators and self-regulatory organizations to ensure that futures customers are fully protected under the commodity laws and that the markets continue to function during this tumultuous period,” said CFTC Acting Chairman Walter Lukken. “We are facilitating all efforts that promote the orderly unwinding and transfer of positions and uphold the safeguarding of customer assets. This announcement is a welcome development.”
For the last several days, senior members of the CFTC staff have been on-site at the Federal Reserve Bank of New York and at Lehman Brothers. The Commodity Exchange Act and CFTC regulations require FCMs to segregate their customers’ funds from their own funds. This requirement is designed to safeguard customers' assets to the fullest extent of the law, even in the event of a bankruptcy.
