Search
 

CFTC to Adopt Client-Funds Rule

Futures brokers say the rule would tie up capital and lead to higher costs for customers.

By Dave Michaels, Bloomberg | Updated on October 30, 2013

The top U.S. derivatives regulator will vote today to adopt rules to improve protections for customer funds two years after MF Global Holdings Inc. collapsed amid claims the brokerage illegally financed investments by borrowing from client accounts.

The Commodity Futures Trading Commission (CFTC) was criticized for poor oversight of MF Global and Peregrine Financial Group Inc., whose founder last year admitted stealing more than $100 million from customers. Regulatory exams over the years failed to detect the embezzlement at Peregrine, which happened over almost 20 years.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.