The top U.S. derivatives regulator discussed proposals to bolster protections for customer funds, after the collapse of MF Global Holdings Ltd. and Peregrine Financial Group Inc. spurred calls for an overhaul of rules, Bloomberg News reported yesterday. The Commodity Futures Trading Commission (CFTC) held a roundtable meeting in Washington, D.C. yesterday following a proposal last year to increase auditing standards and disclosure of brokerage risks to clients. Participants discussed efforts to oversee self-regulatory organizations, including the CME Group Inc., and their duties to monitor futures brokers. The meeting, the third roundtable in the last year on the topic, was scheduled 15 months after MF Global filed for bankruptcy and reported a $1.6-billion shortfall in customer funds. The shortfall and the collapse of Peregrine less than a year later prompted scrutiny of the CFTC and self-regulatory organizations in Congress and the futures industry.
