Summary
WASHINGTON (HedgeWorld.com) - The Commodity Futures Trading Commission has finalized a rule, effective March 12, that will allow it to prohibit a futures commission merchant from carrying out certain equity withdrawal transactions.
If the CFTC determines that a withdrawal, reducing excess adjusted net capital by 30% or more, will be detrimental to the financial integrity of the FCM or will adversely impact its ability to meet customer obligations, it will now be able to prohibit that withdrawal by written order, according to a Jan. 10 announcement in the Federal Register.See the full content of this document
Extract
Refco Fallout: New Fcm Withdrawals Rule
The CFTC issued a release with this proposed amendment in September for the notice and comment period.
It ...See the full content of this document
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