Section 1. Short title
This Act may be cited as the Customer Property Protection Act.
Section 2. Protecting customer property during commodity broker bankruptcy
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, 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, be included in customer 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.