01.19.2024

FIA Supports CFTC Proposal for FCM and DCO Investments

01.19.2024
FIA Supports CFTC Proposal for FCM and DCO Investments

FIA has submitted a joint response with CME to the CFTC’s proposed rulemaking amending its rules governing permissible investments for futures commission merchants (FCMs) and derivatives clearing organizations (DCOs). The letter broadly supports the CFTC’s efforts to provide more safe and liquid investment options for FCMs and DCO to improve collateral and risk management processes for clearinghouses, clearing members and customers.

The letter also offers refinements to the proposed conditions for investments in foreign sovereign debt, treasury ETFs and government MMFs that would bring the conditions more in line with market and industry practices, thus optimizing use of the investments.

We look forward to further engagement with the CFTC as this important initiative progresses toward a final rulemaking and commend the Commission and staff for their diligence in working to ensure the CFTC regulations adapt to changing market conditions and risk management needs while continuing to set the bar for customer protections.

Read the full response.

Source: FIA

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