The Customer Property Protection Act amends the Commodity Exchange Act to clarify how customer property is treated when a commodity broker goes bankrupt. The bill expands the definition of what counts as customer property to include the broker's own cash, securities, inventory, and trading accounts, but only if there isn't enough customer property available to pay back what customers are owed. The new rule applies to individual and institutional customers of commodity brokers and would be implemented by the Commodity Futures Trading Commission. The legislation protects customers by ensuring their claims have priority over creditors' security interests and contractual rights, with certain exceptions for clearing organizations' legally enforceable netting and offset rights. No specific funding or timeline is mentioned in the bill, which focuses on clarifying existing regulatory treatment rather than establishing new programs.
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