CFTC Proposes Rule to Address Margin Adequacy and Treatment of Separate Accounts by FCMs
By: Matthew Rogers and Benjamin Skillin
On February 20, 2024, the CFTC approved a proposed rule that would apply a margin adequacy requirement to all futures commission merchants (FCMs), with respect to their customers. The new requirement—titled Regulation 1.44—is designed to ensure that an FCM does not permit a customer to withdraw funds from its account if the remaining balance would be insufficient to meet the customer’s initial margin requirements.
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