This post is the next installment in a multi-part series on CFTC Regulation §1.44, as proposed by the U.S. Commodity Futures Trading Commission (the “CFTC”) on February 20, 2024 (the “Proposed Rule”).
The previous installment explained that a futures commission merchant (an “FCM”) can elect to treat separate accounts of a separate account customer as separate entities for purposes of the Margin Adequacy Requirement (the “Separate Account Election”) if three conditions are met.
This post will focus on one of those conditions—the requirement that the Separate Account Election can only be made during the “ordinary course of business.”