In light of the MF Global collapse, federal regulators are cracking the whip on Wall Street risk-taking. Single Manual Hammond Organs on this page. On Monday, the Commodity Futures Trading Commission approved the 'MF Global rule,' named after disgraced brokerage firm believed to have improperly used hundreds of millions of dollars of customer money. The new rule will limit investment choices for customer cash in futures firms, mainly preventing firms from using client funds to buy foreign sovereign debt. It also forbids a complex transaction that allowed MF Global to basically borrow money from its own customers. Until now, brokerage firms could invest client money in a number of securities, including sovereign debt. The list of permitted investments grew under the administration of President George W. Bush, the reports.

[subscription required]. But under the new MF Global rule, if firms want to invest customer funds in foreign government bonds, they must petition the agency for a special exemption. The new rule also bans in-house repurchase agreements, or repos, in which one part of a futures firm swaps customer assets for securities such as municipal bonds or foreign-government bonds held at another part of the firm, pocketing the higher interest rates the securities yield, the Wall Street Journal. [subscription required]. From the Wall Street Journal: Since such deals are done internally, they expose customers to a firms' ability to manage risk, critics of the practice say. They also leave it up to the firm to price the securities, leading to potential accounting abuses. 'I believe there is an inherent conflict of interest between parts of a firm doing these transactions,' CFTC Chairman Gary Gensler said.

Industrial Hydraulic Systems And Circuits Ebook Download. The existing policy had been in place since 2005. Download Windows Media Player. The Commodity Futures Trading Commission (CFTC), which voted unanimously to approve the rule in 2010, had originally planned to finalize it months ago -- but delayed action due to strong opposition and a powerful lobbying campaign the futures industry, largely from Jon Corzine, the former governor of New Jersey and CEO of MF Global, who resigned from the his position at the brokerage last month, amid the scandal. At the time, Corzine said the rules were unnecessary because federal laws already prevented brokerage firms from mixing client money with company funds.