FIA Submits Comment Letter to CFTC Regarding Customer Protection Rule

The Futures Industry Association ("FIA") sent a comment letter to the CFTC which supported the majority of the protections in its new consumer protection rule. The FIA commended the CFTC for finalizing the rule, and stated that the "codification" of these new requirements strengthens the protections and safeguards for customers. However, the FIA expressed disapproval of the CFTC's final language on residual interest, which it believes will require far-reaching changes to industry practices that will disadvantage agricultural customers and small futures commission merchants. The FIA explained that the residual interest provision would not protect customers in an "MF Global situation." Additionally, the FIA expressed support for Commissioner O'Malia's proposed amendment.

See: FIA Comment Letter.