The Commodity Futures Trading Commission has approved a new rule that would put tighter limits on how commodity firms can use customer funds. The rule, approved unanimously on a 5-0 vote, would place greater restrictions on the type of transactions that are alleged to have contributed to the collapse of MF Global. Global filed for bankruptcy in October and is still missing an estimated 1.2-billion dollars in customer funds.
Senate Ag committee Chairwoman Debbie Stabenow calls this a “common sense” rule, saying it recognizes the fundamental principle of commodities trading: customer money must be held separate from the firm’s money. Stabenow says the Commission needs to restore faith in our commodity markets, which are so important to America’s farmers and ranchers.
Source: NAFB News Service
Posted by Haylie Shipp