What is CFTC regulations?
What Does the CFTC Regulate? The CFTC regulates the U.S. derivatives markets. This includes the commodity futures, options, and swaps markets as well as over-the-counter (OTC) markets.
What are customer segregated funds?
All customer funds for trading on designated contract markets (exchanges) must be kept apart (“segregated”) from the futures commission merchant’s (FCM’s) own funds—this includes cash deposits and any securities or other property deposited by such customers to margin or guarantee futures trading.
What is target residual interest?
Target RI: This is the Target Residual Interest, which is a number the FCM has communicated to their regulator that they intend to keep on hand to support client requirements. The actual excess should always be above the target (or else the FCM has some red-tape to report to regulator)
Who has to register with the CFTC?
Agricultural Trade Option Merchants (ATOMs) Intermediaries are generally required to register with the CFTC. Associated Persons (APs) also must register and their principals must be listed. Floor Traders (FTs) are also required to register.
Can an FCM act as a clearing broker?
A FCM may act as intermediary between a customer and exchange members that actually execute or clear trades. Additionally, a FCM may be a member of an exchange and serve as a clearing member.
When can I withdraw from segregated funds?
Certain segregated funds offer “guaranteed minimum withdrawal benefits”, which can assist in the wealth conversion process. This type of segregated fund offers guaranteed annual income, normally 5% of the deposit(s), typically at age 65.
How often must an FCM file unaudited financial reports?
monthly
Futures commission merchants (FCMs) must file monthly unaudited financial reports (Form 1-FR-FCM) with the Commission and their designated self-regulatory organizations. Non-guaranteed introducing brokers (IBs) must file semiannual unaudited financial reports (Forms 1-FR-IB) with the National Futures Association.
How often does FCM perform segregated funds calculation?
CFTC Regulation 1.32, Regulation 30.7 and Regulation 22.2(g) require FCMs to complete a segregated funds calculation, secured amount funds calculation, and/or cleared swaps customer collateral calculation respectively for each business day by noon of the following business day.
What is a swap under CFTC?
• Pursuant to authority granted in the Dodd-Frank Act, the CFTC is adopting a rule that defines as swaps those transactions that are willfully structured to evade the provisions of Title VII governing the regulation of swaps.
Who is regulated by the CFTC?
the U.S. derivatives markets
The Commodity Futures Trading Commission is an independent U.S. government agency that regulates the U.S. derivatives markets, including futures, options, and swaps.
How does an FCM work?
A futures commission merchant (FCM) is an entity that solicits or accepts orders to buy or sell futures contracts, options on futures, retail off-exchange forex contracts or swaps, and accepts money or other assets from customers to support such orders.
Do beneficiaries of segregated fund pay income tax?
A segregated fund is deemed to be a trust for tax purposes. The investment policy of each fund is to allocate its income and capital gains and losses realized in the year to policyholders, so that no income tax will be payable by the fund (after taking into account any applicable losses of the fund).
How often does an FCM file a leverage report?
each month
(5) Each futures commission merchant must file with the Commission the measure of the future commission merchant’s leverage as of the close of the business each month.
How does AMP comply with CFTC regulations?
To comply with CFTC regulations, AMP provides each customer a recap of the activity on both CFTC 1.20 US Exchanges (Reg) and CFTC 30.7 Foreign Exchanges (Secured) each day. The amounts, as per CFTC regulations, are recapped and maintained separately on your customer statement identified as “Secured” (30.7) and “Reg” (1.20).
How many CFTC rules have been finalized?
The CFTC has now finalized 79 rules, exemptive orders and guidance actions and 7 other actions. Final Rules, final guidance, final exemptive orders, and other final actions Publication
What is the Code of Federal Regulations (CFR)?
The Code of Federal Regulations (CFR) is the official legal print publication containing the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government. The Electronic Code of Federal Regulations (eCFR) is a continuously updated online version of the CFR.
When did 17 CFR Part 4 come into effect?
17 CFR Part 4 Harmonization of Compliance Obligations for Registered Investment Companies Required To Register as Commodity Pool Operators Effective Date: Thursday, August 22, 2013 Rulemaking: Investment Adviser Reporting 8/15/2013 78 FR 49663// PDF Version 17 CFR Part 39