CFTC Said Poised to Adopt Client-Fund Safeguards After MF Global
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The U.S. Commodity Futures Trading Commission is poised to adopt client-fund safeguards to require more reporting of transfers after the collapse of MF Global Holdings Ltd. and shortfall claims against Peregrine Financial Group Inc., said two people briefed on the matter.
The agency’s five commissioners are voting in private on changes proposed after MF Global’s bankruptcy by the National Futures Association, an industry self-regulator, according to the people who spoke on condition of anonymity yesterday because the rulemaking process isn’t public. The measures would require higher levels of reporting when a broker’s principal approves transfers of customer funds, the people said.