WASHINGTON, D.C., Nov. 25, 2014—FIA today issued an updated version of its guide to the rules and regulations relating to customer fund protections in the U.S. The guide, which was first issued in February 2012, provides futures commission merchants and customers with easy-to-use information about the relevant provisions of the Commodity Exchange Act and the rules of the Commodity Futures Trading Commission.
The guide describes the protections for customer funds held as collateral for futures and options traded on U.S. and foreign exchanges as well as collateral for cleared swaps. It contains frequently asked questions and answers addressing the basics of three broad areas of customer fund protections:
- Segregation, collateral management and investments
- Minimum financial and other requirements for FCMs and joint FCM/broker-dealers
- Clearinghouse guarantee funds
The latest version of the guide has been updated to reflect the fact that several of the CFTC’s enhanced customer protection rules have come into effect since May 2014, when version 3.0 was released. This version also takes into account several no-action letters and interpretations issued by the CFTC that are related to customer fund protections. FIA thanks the members of the FIA Law & Compliance Division and the FIA Financial Management Committee for updating the FAQ.
The full text of the FAQ is available here.