Joint Audit Committee

Enhancing and Assisting U.S. Futures Exchanges in Financial Surveillance of Customers

Customer protection and the financial integrity of the exchanges/clearing organizations are the foremost goals to be achieved through the review of futures commission merchants (FCMs). These goals are achieved by monitoring and enforcing Commodity Futures Trading Commission (CFTC) regulations and exchange rules covering minimum financial, segregation/secured, recordkeeping, and reporting requirements.

Lessening the Regulatory Burden

The CFTC has oversight responsibility of the United States commodity industry. The exchanges and National Futures Association (NFA) have primary responsibility for ensuring market participants are adhering to rules and regulations. The Joint Audit Committee (JAC) was formed to enhance uniformity among participants as well as lessen the regulatory burden for FCMs that are members of multiple exchanges.

Reducing Regulatory Duplication

To ensure the financial integrity of its clearing members, CME Group participates with other United States futures exchanges in the JAC. The JAC is a representative committee of the Audit and Financial Surveillance departments of U.S. futures exchanges and regulatory organizations. Because many clearing members are members of other exchanges, the JAC assigns a "lead regulator" to common members to reduce regulatory duplication. The lead regulator, or Designated-Self Regulatory Organization (DSRO), is primarily responsible for the financial surveillance of its allocated members.

Examining Exchange Customer Protections

The DSRO will perform a risk-based examination upon its allocated members which is designed to meet the goals of customer protection and exchange financial integrity. Such examinations are conducted in accordance with the JAC Examination Program, which is reviewed by the CFTC. The CFTC may, at its discretion, perform its own examination of an FCM.

For additional information, please view the:

Joint Audit Committee Web Site
JAC Margins Handbook
JAC Regulatory Updates

Futures & Options Trading

As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through the CME Globex electronic trading platform and trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort.

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CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX, and COMEX.