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Futures SROs question CFTC's customer segregation proposal

Feb 07 2013 Emmanuel Olaoye, Compliance Complete

Officials from the futures industry have questioned the Commodity Futures Trading Commission's plans to get an "exams expert" or a nationally recognized accounting firm to review the strength of their exams process. The industry skepticism highlights tensions between the industry's self-regulatory organisations, or SROs, and the CFTC over the breadth of their responsibilities for policing market participants. "I don't know that we need an exam expert to implement in our programs," said Anne Bagan, managing director at the CME Group at a public roundtable discussion at the CFTC on Tuesday. Bagan said the CME's job as an SRO was to review the books of a futures broker and to determine whether the firm was following regulatory requirements. "To hold us to GAAP (Generally Accepted Accounting principles) or PCAOB (Public Company Accounting Oversight Board) is not appropriate," Bagan said. The discussion was the CFTC's attempt to gather feedback on its plans to offer better protections

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