Revised financial requirements for FCMs and IBs

The CFTC’s revised financial requirements for FCMs and IBs and NFA’s amendments to NFA Financial Requirements Section 1 are effective as of March 31, 2010. The revised requirements impact FCM financial requirements as follows:

• Increase the minimum dollar capital requirement from $500,000 to $1,000,000;
• Increase the risk-based capital requirement for non-customer accounts from 4% to 8% of the total risk margin requirement for positions carried in non-customer accounts; and
• Include cleared over-the-counter derivative positions in an FCM’s risk based capital calculation for customer and non-customer accounts.

The CFTC also revised the financial requirements for IBs by increasing the net capital requirement from $30,000 to $45,000. The CFTC’s increase to the IB minimum capital requirement brings it to the same level currently required under NFA Financial Requirements Section 5.

About The Author

Felix Shipkevich

Felix Shipkevich is a Manhattan-based attorney and general counsel for Shipkevich Law Firm. He has extensive experience working with the CFTC and NFA on registration, compliance, and enforcement issues for CPOs, CTAs, FCMs, IBs, and RFEDs. Felix also practices intellectual property and corporate governance law.