Customer Property Protection Act

The Customer Property Protection Act amends the Commodity Exchange Act to clarify how customer assets are treated when a commodity broker goes bankrupt. It specifies that cash, securities, and other property held by the broker are considered customer property, but only to the extent that they are insufficient to cover the net equity claims of public customers. This provision allows for unavoidable security interests and contractual offset rights to take precedence over customer claims. The bill directly affects commodity brokers and their public customers by establishing a clearer hierarchy for distributing assets during insolvency proceedings.