CFTC Releases Results of Limited Reviews of Futures Commission Merchants (Press Release)

CFTC Press Release 6171-12

The CFTC released findings of limited reviews of futures commission merchants (FCMs) to assess compliance with requirements to segregate customer funds pursuant to Section 4d of the CEA. The limited reviews also covered the FCMs' obligation to set aside in secured accounts funds deposited by customers for trading on foreign boards of trade under Section 4(b) of the Act and Part 30 of the Commission's regulations. As of the review date for each FCM, all of the FCMs were in compliance with the segregation or Part 30 secured amount requirements. The FCMs held a total of approximately $166 billion in segregated accounts, which was approximately $13 billion (or 9%) in excess of the $153 billion owed to customers. He FCMs also held approximately $48 billion in Part 30 secured accounts, which was approximately $7 billion (or 17%) in excess of the Part 30 secured amount obligation.

Cross References: CEA Section 4d; CFTC Rules 30.7 Part 190; Lofchie's Guide to CPO/CTA Regulation: Chapter 12, Insolvency.