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Residual Interest Rule Cometh Commentary,Regulation

CFTC

The Commodity Futures Trading Commission took up the issue of enhanced customer protections today, finalizing a rule that would require futures commission merchants (FCMs) to adopt new risk management programs that relate to operations, capital and customers fund segregation. The new rule, passed this morning, will also require FCMs to keep so-called “residual interest in customer accounts.” The CFTC rule says FCMs must maintain residual interest “that is at least equal to its customers’ aggregate under margined amounts for the prior trade date by the point in time specified in the rule. Essentially, one year after the rule appears in…

JLN Financials: Residual Interest Rule Cometh; Tradeweb Applies With CFTC to Offer First Credit-Swap Trading; A new world order and China’s key role Financials,Newsletter

First Impressions Residual Interest Rule ComethJim Kharouf and Doug Ashburn – John Lothian News The Commodity Futures Trading Commission took up the issue of enhanced customer protections today, finalizing a rule that would require futures commission merchants (FCMs) to adopt new risk management programs that relate to operations, capital and customers fund segregation. The new rule, passed this morning, will also require FCMs to keep so-called “residual interest in customer accounts.” The CFTC rule says FCMs must maintain residual interest “that is at least equal to its customers’ aggregate under margined amounts for the prior trade date by the point…

FIA Boca Preview: Walt Lukken on the Impact of Regulation on the Futures Industry (Part 2) Interview,Regulation,Video

Walt Lukken FIA Boca

Walt Lukken knows regulation. As a former Commodity Futures Trading Commission (CFTC) acting chairman and commissioner, he has seen the Dodd-Frank rulemaking process first hand. Now, after completing his first 12 months as president and CEO of the FIA, he’s trying to ensure that all those regulations make sense and work for industry participants. With FIA Boca set to start on March 12, Lukken spoke with JLN editor-in-chief Jim Kharouf about where we are in the Dodd-Frank rulemaking process, costs associated with the new rules, and his thoughts on some of the most controversial moves by regulators and exchanges. In advance…

Residual Interest: CFTC Proposal Poses “Monumental” Challenge to FCMs Regulation,Special Report,Video

CFTC Roundtable

A rule proposed by the Commodity Futures Trading Commission (CFTC) designed to strengthen safeguards for customer deposits at futures commission merchants (FCMs) is threatening to overhaul the futures brokerage system. The proposed “residual interest” provision introduced last fall, and discussed in a CFTC roundtable on February 5, would require substantial increases in margin buffers by FCMs. The meeting led by Robert Wasserman, chief counsel of the CFTC’s Division of Clearing and Risk, included panelists Mike Dawley of Goldman Sachs and FIA chairman and Kim Taylor,  CME Clearing president who argued that the increased margin requirements under the proposal are substantial….