CME’s Duffy Warns Senate That Proposed CFTC Rule to Hurt Brokers

A proposed U.S. rule meant to protect futures customers’ money in a collapse like MF Global Holdings Ltd. could “fundamentally change” how the market functions, according to Terrence Duffy, executive chairman of CME Group Inc.

The Commodity Futures Trading Commission proposal that futures brokerages set aside enough of their own money to cover customers’ collateral deficits throughout the day may end up driving clients from the market and companies out of business, the Futures Industry Association and two Chicago firms, Rosenthal Collins Group LLC and RJ O’Brien & Associates LLC, told the agency earlier this year.