Financial Markets and Funds Quick Take – Issue 3 | Katten Muchin Rosenman LLP

Regulatory Alert! A Joint Audit Committee Reminder to FCM Legal and Compliance Personnel –

The Joint Audit Committee (JAC) is a club of futures exchanges, in their capacities as selfregulatory organizations (SROs). Under a delegation of authority from the Commodity Futures Trading Commission (CFTC), the JAC monitors and examines member futures commission merchants (FCMs) for compliance with financial, reporting and risk management requirements (including rules relating to segregation of customer funds) adopted by member SROs and the CFTC. The JAC has issued a Regulatory Alert, 22-02, reminding member FCMs of their obligations under CFTC Regulation 1.11. It’s safe to infer that the Alert is based on compliance gaps detected in recent FCM regulatory exams by member SROs.

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