|Federal Information & News Dispatch, Inc.|
Good afternoon Chairman Neugebauer, Ranking Member Capuano, and members of the Subcommittee. I am
My testimony today will provide an update on the efforts to return customer money through the bankruptcy proceeding and an overview of the Commission's regulation of futures commission merchants (FCMs), including
Efforts to Return MF Global Customer Money
Within the first weeks of the
Oversight of FCMs
An FCM is an entity that (1) solicits or accepts orders for the purchase or sale of commodity future contracts; and (2) accepts money, securities, or property to margin, guarantee, or secure any resulting trades.
Because FCMs hold customer money, they are subject to minimum financial and reporting requirements pursuant to the Commodity Exchange Act (CEA or Act) and Commission Regulations. Front line oversight of these requirements is carried out by designated self-regulatory organizations (DSROs), such as the