In 2013, the Commodity Futures Trading Commission amended CFTC Regulation 1.22 to require a futures commission merchant (FCM) to maintain its own funds (i.e., residual interest) in customer segregated accounts in an amount equal to or greater than its customers’ aggregate undermargined amounts. If its customer segregated accounts are undermargined, the FCM must deposit its residual interest prior to a specified residual interest deadline. Under the current regulation, the residual interest deadline is subject to a phase-in period. Beginning November 14, the deadline will be 6:00 p.m. (ET) on the date of settlement. Absent any action by the CFTC, the phase-in period will expire on December 31, 2018, at which point the residual interest deadline will change to the time of settlement on the settlement date. 

The CFTC has proposed to remove the termination date for the phase-in period. Under the proposed amendments to CFTC Regulation 1.22, any changes to the 6:00 p.m. residual interest deadline must be enacted through a final rule published in the Federal Register. 

The text of the proposed rulemaking is available here.