CFTC’s Proposal for Futures Margin May ‘Kill’ Brokerage Model

By Matthew Leising

April 14 (Bloomberg) — The Commodity Futures Trading Commission may require margin changes in futures markets that could wipe out billions of dollars of interest income at brokers. The CFTC has proposed divvying up margin payments of individual swaps users at clearinghouses rather than allowing accounts to be treated as one pool by banks representing multiple customers. Futures markets now allow banks to pool all their customer accounts together when settling a day’s margins.
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