WASHINGTON, (Reuters) - The U.S. futures regulator is poised to approve a rule aimed at holding futures executives accountable for customer funds, days after a $220 million shortfall at PFGBest sent the futures broker spiraling into bankruptcy, two sources told Reuters.
The rule, which would require top executives at futures brokers to sign off on major withdrawals from customer accounts, has gotten the "ok" from at least three commissioners at the Commodity Futures Trading Commission, said the sources who were not authorized to speak on the record.
The measure, proposed by the National Futures Association, was dubbed the "Corzine rule," after the former CEO of MF Global. That firm collapsed last October after investors and customers became rattled over its multibillion-dollar bet on European sovereign debt and downgrades by credit rating agencies, resulting in a liquidity crunch.
An estimated $1.6 billion in customer funds went missing at MF Global.
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