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.

Read more about the proposed rule.

Photo credit: Steve Snodgrass