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Arthur Hahn
Commodity Futures Trading CommissionJPMorgan Chase
Meanwhile, the CFTC has introduced some legal uncertainty to the proposal by stating that a depository won't be liable for relying on an instruction from the Commission if it first takes "reasonable measures" to assure that the instruction was given by a "duly authorized officer or employee" of the agency, wrote Arthur Hahn , partner with Katten Muchin Rosenman , in a separate letter. The uncertainty lies in the CFTC's reluctance to define these two phrases, he wrote. Firms have an obligation to the Commission to release customer funds "immediately upon proper notice" but also a responsibility to client FCMs to first assure that any notice given by the CFTC was "duly authorized," Hahn wrote. These conflicting obligations could open depositories to both regulatory and customer claims, he added.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 Institutional Investor
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
