MFA and Other Trade Associations Submit Letter to CFTC Staff Requesting Extension of the Rule 1.73 Bunched Order Agreement Compliance Date

The MFA, the Futures Industry Association, the Investment Company Institute, and SIFMA's Asset Management Group submitted a joint letter to the CFTC's Division of Clearing and Risk requesting a 90-day extension of Rule 1.73(a)(2)(v)(B) from June 1, 2013, to September 1, 2013.

Rule 1.73(a)(2)(v)(B) requires FCMs and account managers to enter into an agreement for bunched orders that requires the account manager to screen the bunched order for compliance with applicable risk limits. In the letter, the trade associations explained that, while the industry is actively working on complying with the obligations of the rule, more time is necessary to disseminate the industry standard agreement and promote industry-wide education regarding the agreement and the requirements of the rule.

Click here to view letter in full (links externally to MFA website).See also: News story as to prior no-action letter with link to letter: CFTC's Division of Clearing and Risk Issues Extension of Time for Compliance from Certain Pre-Trade Screening Requirements.