CFTC Issues Interpretive Guidance Regarding Customer Margin Deposits Submitted Using Automated Clearing House Payment Processing Systems (CFTC Letter 14-129)

The CFTC Division of Swap Dealer and Intermediary Oversight issued an interpretation of CFTC Rules 1.22, 22.2 and 30.7. The interpretation provides that a futures commission merchant ("FCM") may credit a customer's trading account for a margin payment upon the FCM's initiation of a withdrawal from the customer's bank account using the Automated Clearing House ("ACH") payment processing system.

The interpretation is consistent with a previous staff interpretation of how an FCM should account for checks deposited by customers for margin payments. The interpretation also provides that an FCM may include pending ACH payments as margin funds received in computing the FCM's under-margined capital charge under CFTC Rule 1.17 ("Minimum Financial Requirements for Futures Commission Merchants and Introducing Brokers").

See: CFTC Letter 14-129.