Futures Brokers Say Rule May Put Them Out of Business

Futures brokerages say a proposed U.S. rule meant to protect customers’ money in a collapse like MF Global Holdings Ltd.’s bankruptcy may end up driving clients from the market and companies out of business.

Brokerages would be severely harmed by a Commodity Futures Trading Commission requirement that they set aside additional money to cover customers’ collateral deficits, the Futures Industry Association and two Chicago firms, Rosenthal Collins Group LLC and RJ O’Brien & Associates LLC, have told the agency.