CFTC Adopts 1st Post-MF Global Rule

Law360, New York (December 5, 2011, 12:28 PM EST) -- U.S. futures regulators on Monday approved a rule to prevent brokerages from using customer funds for controversial in-house repurchase agreements commonly known as repos, which bankrupt broker-dealer MF Global Inc. apparently employed to cover its disastrous bets on European sovereign debt.

In a unanimous vote fueled by frustration over MF Global's collapse and its loss of more than $1 billion in customer funds, the U.S. Commodity Futures Trading Commission adopted the rule change banning transactions that allowed brokerage firms to borrow against client money to prop...
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