CFTC might restrict how derivatives brokers use clients' cash

12/5/2011 | Bloomberg · Wall Street Journal, The

The Commodity Futures Trading Commission is poised to consider limiting the way derivatives firms are allowed to use clients' collateral, in the wake of MF Global Holdings' collapse. CFTC Chairman Gary Gensler said the agency needs to "tighten up" rules on use of customer cash. "I think that we should not allow what's called affiliate repurchase agreements or in-house -- where you take customer money and lend it to another side of the house," he said.

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Bloomberg · Wall Street Journal, The

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