CFTC to Consider Post-MF Global Futures-Collateral Safeguards
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The U.S. Commodity Futures Trading Commission will hold a roundtable next week to consider steps to safeguard collateral -- including a plan to insulate futures clients’ funds during a broker default -- following the collapse of MF Global Holdings Ltd., according to two people briefed on the agenda.
The plan, one of several possible regulatory changes, would mimic new rules completed Jan. 11 for the swaps market, according to the people, who spoke on condition of anonymity because the roundtable agenda isn’t public. The swap plan, approved on a 4-1 vote, is designed to protect clients’ collateral if their broker defaults, while also allowing the customer funds to be pooled before a bankruptcy.