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CFTC Plans Futures Margin Rules

The Commodity Futures Trading Commission is planning to divide margin payments of individual swaps users at clearinghouses.

The Commodity Futures Trading Commission is planning to divide margin payments of individual swaps users at clearinghouses, Bloomberg reports. The move will not allow accounts to be treated as one pool by banks representing multiple customers. The proposal may be applicable for futures margin too.

The plan will reduce profits at brokerages, called futures commission merchants, as it will require them to send any excess collateral along to a clearinghouse. The rule will require customers of brokerages, such as Newedge or MF Global, to treat margin treated on a “gross basis” equal to the amount of cash to back trades that will be required if the customer was a member of the clearinghouse.

Click here for the story from Bloomberg.

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