The CFTC approved rules for publication that will require futures commission merchants (“FCM”), introducing brokers (“IB”), commodity pool operators (“CPO”), and other CFTC-regulated entities to create policies for responding to red flags signaling identity theft.
Under the proposed rules, the CFTC-regulated entities must adopt programs that include polices to:
- Identify red flags
- Detect the occurrence of red flags
- Respond appropriately to red flags
- Update programs periodically
The rule will include guidelines and examples of red flags to help firms develop and implement their programs.