NFA's Board of Directors approves rule to enhance the customer segregated funds protection regime

The Board of Directors of National Futures Association (NFA) approved amendments to NFA Financial Requirements that will require each futures commission merchant (FCM) to provide its Designated Self-Regulatory Organization (DSRO) with view-only access via the Internet to account information for each of the FCM's customer segregated fund account(s) maintained and held at a bank or trust company. Under this rule, the relevant DSRO would be able to check any customer segregated and secured bank account balance maintained for any FCM without asking the FCM or the bank holding the assets for assistance, and the NFA would be able to compare those balances to the firm's daily segregation report. NFA intends to expand this approach, once it is implemented, to receive daily reports from all depositories for customer segregated and secured accounts, including clearing FCMs.

NFA has sent the rule to the CFTC for approval.

View Press Release here (links externally to NFA website).