📉New Margin Requirements for Futures Commission Merchants Effective March 2025
Regulations To Address Margin Adequacy and To Account for the Treatment of Separate Accounts by Futures Commission Merchants
Summary
The Commodity Futures Trading Commission (Commission or CFTC) is amending its regulations, adopted under the Commodity Exchange Act (CEA), to require a futures commission merchant (FCM) to ensure a customer does not withdraw funds from its account with the FCM if the balance in the account after the withdrawal would be insufficient to meet the customer's initial margin requirements; and relatedly, to permit an FCM, subject to certain requirements, to treat the separate accounts of a single customer as accounts of separate entities for purposes of certain Commission regulations.
Agencies
- Commodity Futures Trading Commission
Business Impact
$$ - Med
The regulation mandates futures commission merchants (FCMs) to ensure customer accounts meet margin requirements before permitting withdrawals. This affects cash management, compliance costs, and operational practices for businesses engaging with FCMs. The changes also expand the requirements to all FCMs, broadening the scope of impact across the industry.