CFTC Approves New Rules Meant To Better Protect Segregated Funds at FCMs

The Commodity Futures Trading Commission July 13 approved new rules submitted by the National Futures Association aimed at improving the protection of customer funds held by futures commission merchants.

Among other changes, the rules will require FCMs to maintain written policies and procedures regarding the maintenance of excess funds in segregated accounts; to tighten their calculations and reporting of segregation computations; and to secure written approval of senior management for certain withdrawals of excess funds from segregated accounts.

The action comes the same week the commission filed suit against a registered FCM, Peregrine Financial Group Inc., alleging that it falsely ...