CFTC Amends SRO Financial Surveillance Programs For FCMs

The CFTC amended its rule governing the standards for a self-regulatory organization's ("SRO") financial surveillance examination program of futures commission merchants ("FCMs"). Pursuant to CFTC Rule 1.52, SROs of designated contract markets are required to monitor an FCM member's compliance with the designated contract markets' minimum financial requirements. The amendments adopted by the CFTC revise the scope and frequency of certain requirements of this program.

While the amendments still require an "examinations expert" to review the SRO's supervisory standards, it eliminates the current requirement that the expert evaluate the sufficiency of the program's risk-based approach or internal controls testing.