FINANCIAL AND REGULATORY BULLETIN
TO: Chief Executive Officers #14-03
Chief Financial Officers
Chief Compliance Officers
Under Exchange Rule 971.C., FCM clearing members are required to provide the Financial and Regulatory Surveillance Department (“FRS”) with access to customer account information at all depositories, in a form and manner prescribed by FRS. Additionally, the depository must allow the FCM clearing member to provide FRS with access to the account information in a form and manner prescribed by FRS.
In the past 15 months, FRS contacted FCM clearing members to facilitate the receipt of end of day balances from FCM customer accounts held with banks, trust companies, direct investments in money market mutual funds, other clearing FCMs, and foreign brokers.
To maintain compliance with the rules, FRS will now require the receipt of end of day balances from FCM customer accounts held with derivatives clearing organizations (“DCO’s”) no later than June 30, 2014.
FRS relationship managers will soon contact FCM clearing members individually to facilitate the receipt of DCO balances. Blank authorization letters and file specifications will be provided at that time. Executed copies of authorization letters will need to be sent to each DCO with copies provided to FRS by March 10, 2014.
If you have any questions, please contact the Financial and Regulatory Surveillance Department at (312) 930-3230.
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.