US FCMs’ residual interest buffers hit record low in December
A decade on from CFTC rules on residual interest target, firms’ segregated cash has not kept pace with client funds
US futures commission merchants’ (FCMs) residual interest – the amount of own funds set aside to support daily changes in clients’ accounts – as a share of required customer funds for swaps hit an all-time low of 3.3% at the end of last year, Risk Quantum analysis of data from the Commodity Futures Trading Commission (CFTC) shows.
At the turn of 2023, the aggregate residual interest in segregated
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