CFTCFinal RuleJanuary 22, 2025

Investment of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations

Finance & Banking

Summary

This federal rule sets standards for how futures brokers and clearing organizations must handle and invest customer money that they hold temporarily. The regulation aims to protect customers' funds by requiring these financial companies to follow specific safety rules when managing deposits and making investments with customer cash.

Key Points

1Futures brokers and clearinghouses must follow strict rules about where they can invest customer deposits to ensure the money remains safe and accessible
2Companies must maintain adequate reserves and cannot take unnecessary risks with customer funds, similar to how banks protect deposits
3The rule applies to the futures market—a financial market where traders buy and sell contracts on commodities, currencies, and other assets
4These requirements help protect everyday investors and traders from losing their money if a brokerage company fails or mishandles deposits
5The CFTC (the federal agency that oversees futures trading) will enforce these standards to ensure brokers follow the rules

Key Dates

Published

January 22, 2025

Read on Federal Register View Docket

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.