Alternative Market Risk and Credit Risk Capital Charges for Futures Commission Merchants and Specified Foreign Currency Forward and Inventory Capital Charges

Résumé

The Commodity Futures Trading Commission ("Commission" or "CFTC") is amending Commission regulations that impose minimum financial and related reporting requirements upon each person registered as a futures commission merchant ("FCM"). The amended regulations address the capital computations of FCMs that are registered with the Securities and Exchange Commission ("SEC") as securities brokers or dealers ("FCM/BDs"), and, who, pursuant to SEC's regulations governing consolidated supervised entities ("CSEs"), have received SEC approval to use internal mathematical models to determine the deductions from their capital for market risk and credit risk associated with their proprietary trading assets. Subject to the reporting and other requirements specified in the amended regulations, these FCM/BDs may elect to compute their adjusted net capital using their SEC-approved alternative market risk and credit risk capital deductions in lieu of CFTC requirements. The Commission is also adopting other rule amendments that address confidential treatment for the reports and statements that would be required to be filed under the amended regulations, and also address the confidential treatment of