US segregated fund regulations may have outlived their
usefulness, market participants said last week. The rules came
under scrutiny last Wednesday during a meeting of the newly
re-organised Global Markets Advisory Committee (GMAC) in
At issue for several members of the committee, which is run
as an advisory group to Commodity Futures Trading Commission
(CFTC), is whether segregated and secured accounts in the US
are still needed in an increasingly international marketplace.
The long-standing CFTC regulation requires secured amounts for
transactions of foreign futures and options to remain separate
from segregated funds. This was designed to prevent the
draining of funds available to domestic customers trading on US
exchanges in the event of a firm default. The issue is central
to the application for the cross-Atlantic clearing link between
The Clearing Corporation (TCC) and Eurex Clearing, which
involves balancing secured and segregated accounts in the US
with German accounts that are not separated.
This article is available exclusively to subscribers
Please log in to continue reading.
Not yet a subscriber?
Click here to take a free trial.
Already have an account? |
Please fill in your details below and a customer service representative will contact you.