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The CFTC final rule that removes the December 31, 2018 automatic termination date for the phased-in compliance schedule for futures commission merchants ("FCMs") was published in the Federal Register. The final rule, which will become effective on May 26, 2015, also provides assurance that the residual interest deadline will be revised only through a separate CFTC rulemaking. See: 80 FR 15507 . Related news: CFTC Approves Final Rule Regarding Residual Interest Deadline for FCMs (with Zwirb Comment) (March 18, 2015).

NFA issued a Complaint and Decision charging an NFA-member futures commission merchant ("FCM") with failing to report balances of its customers' segregated funds accounts to NFA through the daily confirmation system. NFA Financial Requirements Sections 4(c) and 4(d) require an FCM that holds customer segregated funds and customer secured amount funds to instruct the depositories that hold such funds to report the balances to NFA, or a third party designated by NFA, on a daily basis. Pursuant to a settlement offer submitted by the FCM, the firm was ordered to pay a $17,500 fine to NFA. See: NFA

NFA issued a Complaint and Decision charging UBS Financial Services, Inc. ("UBS"), an NFA-registered futures commission merchant ("FCM"), with withdrawing more than 25 percent of the target residual interest amount. Additionally, NFA charged UBS with failing to obtain written pre-approval of a financial principal and submit such pre-approval to NFA prior to making such withdrawal as provided under NFA Financial Requirements Section 16(a). NFA Financial Requirements Section 16(c) provides that no FCM may withdraw, transfer, or otherwise disburse funds from foreign futures and foreign options

Commentary by Bob Zwirb

The CFTC unanimously approved a final rule removing the automatic termination of the phased-in compliance period for the Residual Interest Deadline for futures commission merchants ("FCMs"). The termination was scheduled to occur on December 31, 2018. Under the phased-in compliance schedule in CFTC Rule 1.22 ("Use of Customer Funds Restricted"), an FCM is required to maintain a sufficient amount of its own funds ("residual interest") in customer segregated accounts by the Residual Interest Deadline of 6:00 p.m., Eastern time, on the next business day to cover customers' under-margined amounts

MFA submitted a comment letter to the CFTC in response to the CFTC- proposed rulemaking , "Residual Interest Deadline for Futures Commission Merchants." MFA stated that it "strongly supports" both the proposed rules and the CFTC's determination to terminate the phase-in period for the residual interest deadline and establish the deadline time as 6:00 p.m., Eastern Time, permanently on the date of settlement. According to MFA, requiring futures commission merchants ("FCMs") to comply with a shorter timeframe would be "problematic." It would not allow sufficient time for FCMs to collect margin