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ARTICLE · 20 FEBRUARY 2014

Understanding The CFTC Customer Protection Rules: A Guide For Customers

Reed Smith
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Every customer of a futures commission merchant should become familiar with the series of "customer protection rules" finalized by the United States Commodity Futures Trading Commission in November 2013.

United StatesFinance and Banking
Andrew Cross
Andrew Cross
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Every customer of a futures commission merchant (or "FCM") should become familiar with the series of "customer protection rules" finalized by the United States Commodity Futures Trading Commission in November 2013. While some of these rules went into effect in mid-January, many of them will be implemented over the next several months.

In short, these rules will require your FCM to provide you with new information about its business and risk management processes. Understanding what information will be available to you is the first step in the process of using the information to lower risk faced by your organization.

We have been meeting our clients and friends in order to help them understand how to use the new information as part of their internal risk management and broker monitoring programs.

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