Part 10: Capital, Risk Management, and Segregation Calculations by FCMs
The BR Derivatives Report
This post is the next installment of a multi-part series on CFTC Regulation §1.44, as proposed by the U.S. Commodity Futures Trading Commission (the “CFTC”) on February 20, 2024 (the “Proposed Rule”).
Sub-paragraph (g) of CFTC Regulation §1.44 permits a futures commission merchant (“FCM”) to treat each separate account as a distinct account from all other accounts of the same customer for purposes of the FCM’s capital, risk management, and segregation calculations.
Absent the relief for separate accounts afforded by this sub-paragraph, an FCM would have to combine all of the accounts of a single customer for purposes of complying with these regulatory requirements.
To read the full post, please visit our BR Derivatives Report blog.