Acknowledgment Letters

The Joint Audit Committee issued a Regulatory Alert to remind FCMs that any new accounts for segregated funds, secured funds or sequestered funds will need an acknowledgment letter in the form of the revised standard template and that all existing accounts will need new acknowledgment letters by July 12, 2014.  

CFTC Outlines the Safeguards for Customer Records

On Feb. 26, 2014, the CFTC issued an advisory to remind FCMs, IBs, CTAs, and CPOs of their obligations under Gramm-Leach-Bliley to “adopt policies and procedures that address administrative, technical and physical safeguards for the protection of customer records and information.” The advisory outlined best practices including: 1. Designating a privacy and security manager 2. … READ MORE

CME Market Data Fees

Effective March 1, 2014, CME Market Data fees will apply to all new accounts using CME data for trading. For “non-professional” traders the fee is only $15 per month for all CME divisions. For “professional” traders  the fee is $85 per CME division per month or $340 per month for the entire Exchange. “Professional” is … READ MORE

Segregated Funds

January 10,2014 Segregated and Secured Funds- The CFTC recently issued no action relief Letters 14-02 and 14-03 regarding the handling of customer funds that are intended for both segregated and secured accounts. This is a subtle but important point in the customer protection area.

NFA Requests Comments

January 23, 2014 Request for Comments- The NFA is requesting comments on proposed customer protection measures regarding managed accounts and pooled accounts. Among the areas being considered are capital requirements, 3rd party custodians and verification of pooled assets. Comments are due April 15, 2014.