Margin Change Causes Concerns

Posted by Rick Shields on

Portions of a proposed rule to enhance the protection of customer’s margin funds could prohibit hedgers from using this risk management tool. The Commodity Futures Trading Commission is suggesting a provision that would require the Futures Commission Merchant - or FCM - to take a capital charge one day after a margin call was issued on a customer account. Todd Kemp with the National Grain and Feed Association says they’re opposed to this change because it would hurt traditional hedgers - especially smaller farmers that send checks

Margin Change Causes Concerns

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