For Release: February 23, 2012

CFTC Staff to Host a Two-Day Public Roundtable to Discuss Additional Customer Collateral Protections

Washington, DC – The Commodity Futures Trading Commission (CFTC) today announced that staff will hold a two-day public roundtable to discuss additional customer collateral protection. The roundtable is to gather public input on a variety of ideas to further protect customers. The agenda for the roundtable is listed below.

Specifically, day one discussions will focus on issues related to the advisability and practicality of implementing the legal segregation with operational commingling (LSOC) model as the segregation model for collateral posted by futures customers (the Commission has already approved this model for swaps); alternative models for the custody of customer collateral; enhancing futures commission merchant (FCM) controls over the disbursement of customer funds deposited for trading on U.S. futures markets; increasing transparency surrounding an FCM’s holding and investment of customer funds; and lessons learned from commodity brokerage bankruptcy proceedings.

Day two of the two-day session will focus primarily on the protection of customer funds deposited with FCMs for trading on foreign futures markets; particular issues associated with entities dually registered with the CFTC as FCMs and the U.S. Securities and Exchange Commission as broker-dealers (BDs); and enhancing the self-regulatory structure.

The roundtable discussions are scheduled for Wednesday, February 29 and Thursday, March 1. Both are scheduled to begin at 9:30 a.m., in the Conference Center at the CFTC’s Headquarters at 1155 21st Street, NW, Washington, DC.

Listening information for Day 1 and Day 2:

US Toll-Free: 866-844-9416
International Toll:

Transcripts of the roundtable discussions will be published on the CFTC’s website at: /LawRegulation/DoddFrankAct/Dodd-FrankPublicEvents/index.htm.

Members of the public wishing to submit their views on the topics addressed at the roundtable may do so via:

    • Paper submission to David Stawick, Secretary, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581; or

    • Electronic submission by visiting and following the instructions for submitting comments through the CFTC’s website.

All comments on the Day 1 discussions must be identified by RIN number 3038-AD70. All comments on the Day 2 discussions must be identified by RIN number 3038-AD71.

All submissions provided to the CFTC in any electronic form or on paper may be published on the Commission’s website, without review and without removal of personally identifying information.

Agenda for Day 1:

9:30 a.m.

First Session – LSOC for Futures

10:30 a.m.

Morning Break

10:45 a.m.

Second Session – Alternative Models for Custody of Customer Collateral

12:45 p.m.

Lunch Break

1:30 p.m.

Third Session – Enhancing Customer Protection and Transparency Through an FCM on U.S. Futures Markets

4:30 p.m.

Fourth Session – Commodity Broker Bankruptcies/Part 190

5:30 p.m.

Roundtable Concludes

Agenda for Day 2:

9:30 a.m.

First Session – Enhancing Protections for Customers Trading Through an FCM on Foreign Futures Markets – Part 30

12:00 noon

Lunch Break

1:00 p.m.

Second Session – Issues Particular to Dually Registered FCMs and BDs

2:30 p.m.

Afternoon Break

2:45 p.m.

Third Session – Self-Regulatory Organizations and Self-Regulatory Oversight

4:15 p.m.

Roundtable Concludes

Last Updated: February 23, 2012