Futures Traders Can't Withdraw if It Leaves Margin Short—Bureaucracy Saves the Day
Published Date: 1/22/2025
Rule
Summary
Starting March 24, 2025, futures commission merchants (FCMs) must stop customers from withdrawing money if it leaves their account short on required margin. Also, FCMs can treat separate accounts of one customer as totally separate for some rules, making things clearer and safer. Big changes kick in by July 21, 2025, for some FCMs, and by January 22, 2026, for the rest—helping protect everyone's trading funds.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 1 costs, 1 mixed.
No Withdrawals That Undermine Margin
Starting March 24, 2025, futures commission merchants (FCMs) must prevent a customer from withdrawing funds if the account balance after the withdrawal would be insufficient to meet the customer's initial margin requirements. Clearing-member FCMs must comply by July 21, 2025, and all other FCMs must comply by January 22, 2026.
Separate-Account Treatment Allowed With Conditions
The rule permits an FCM, if it and the customer affirmatively elect and meet specified requirements, to treat separate accounts of the same customer as accounts of separate entities for certain regulations. Requirements include written internal controls, monitoring accounts on separate and combined bases, disclosure to customers, DSRO notification, capital and risk-management rules, and stopping separate-account disbursements upon specified events and resuming upon cure.
No Cross-Account Portfolio Margining
When an FCM provides separate-account treatment, the rule prohibits applying portfolio margining or cross-margining offsets between separate accounts of the same customer; portfolio margining may still occur within an individual separate account.
Business Day Definition Excludes Saturdays
The rule amends the definition of "business day" so it means any day other than a Saturday, Sunday, or U.S. holiday. This affects timing rules that reference a "one business day" margin call or related deadlines under the final rule.
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Key Dates
Department and Agencies
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