Pushing For Stricter FCM Controls Post MF Global

Law360, New York (June 11, 2012, 1:15 PM EDT) -- The futures industry's self-regulating organization has proposed new requirements intended to provide better disclosure and control regarding the amount of a futures commission merchant's residual interest in customer segregated accounts and the withdrawal of funds from customer segregated accounts.

In the continuing regulatory response to the insolvency of futures commission merchant (FCM) MF Global, the National Futures Association (NFA) on May 29 sought Commodity Futures Trading Commission approval of new financial requirements for FCMs.[1]

Under current CFTC rules, an FCM must segregate from its own funds...
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