Futures For You by Carley Garner
ITíS ONLY MARGINAL
The CFTC has recently implemented new margining rules for FCMs (futures commission merchants). How does this impact retail traders in regard to margin calls?
Although it has been nearly three years since the collapse of futures giants MF Global and PFGBest, the commodity industry continues to feel wakes in the aftermath. Since their demise, regulators have been tirelessly drafting and implementing safeguards aimed at protecting futures traders from brokerage firm risk.
In light of the aforementioned events, the rules that worked well for decades were suddenly deemed inadequate. Unfortunately, as we learned as children on the playground and repeatedly throughout our lives, a few bad apples ruin it for the rest.