CFTC Charges R.J. O'Brien Associates LLC with Violating Customer Protection Regulation

The CFTC issued an order filing and settling charges against R.J. O'Brien Associates LLC ("RJO"), a CFTC-registered FCM, for unlawfully commingling secured foreign futures and options customer funds with segregated domestic futures and options customer funds.CFTC Rule 30.7(d) ("Treatment of Foreign Futures or Foreign Options Secured Amount") prohibits secured customer funds from being commingled and deposited into the same accounts separately held for segregated domestic futures and options customer funds. The CFTC Order found that RJO, acting as a clearing FCM and depository, failed to comply with Rule 30.7(d) when they transferred funds from the non-clearing FCM's secured omnibus customer account and held, commingled, and deposited the secured customer funds in the non-clearing FCM's segregated omnibus customer account. The Order further found that RJO did not make a margin call to the non-clearing FCM and did not notify the non-clearing FCM that it was transferring the funds from the non-clearing FCM's secured omnibus account.

See: CFTC Order Against RJO; CFTC Press Release.