First published in 2012, after the Commodity Futures Trading Commission made significant changes to is customer protection rules as part of the agency’s implementation of the Dodd-Frank Act, the FIA Protection of Customer Funds FAQ has become a widely used resource for the industry. As updated, the document contains 30 questions and answers addressing the basics of: (1) FCM segregation of customer funds, collateral management and investments; (2) minimum financial and other requirements for FCMs and dually registered FCM/broker-dealers; (3) treatment of customer funds in the event of an FCM insolvency; and (4) clearinghouse guarantee funds.
The 2025 updated version reflects key regulatory changes identified by the FIA Law & Compliance Division since the last update in 2014, including: updates to the list of permissible investments for FCMs and clearinghouses consistent with recent amendments to CFTC Rule 1.25, discussion of separate accounts and permissible margin practices under new CFTC Rule 1.44, and explanation of heighted risk profile customer account designations under revised CFTC Rule 39.13. It also includes a new section explaining the protections afforded to customer funds in the unlikely event an FCM bankruptcy under the U.S. bankruptcy code and related CFTC regulations.
