MFA and Other Trade Associations Submit Letter to CFTC Staff Requesting Extension of 1.73 Bunched Order Agreement Compliance Date

MFA, the Futures Industry Association, the Investment Company Institute, and the Securities Industry and Financial Markets Association’s Asset Management Group submitted a joint letter to the Division of Clearing and Risk of the Commodity Futures Trading Commission (CFTC) requesting a 90-day extension of Rule 1.73(a)(2)(v)(B).  Rule 1.73(a)(2)(v)(B) requires futures commission merchants (FCMs) and account managers to enter into an agreement for bunched orders that requires the account manager to screen the bunched order for compliance with applicable risk limits.  In the letter, MFA and the other trade associations expressed that, although the industry is actively working on complying with the obligations of the rule, more time is necessary to disseminate the industry standard agreement and promote industry-wide education regarding the agreement and the requirements of the rule.  Therefore, MFA and the other trade association requested that CFTC Staff extend the compliance date for the rule from June 1, 2013 to September 1, 2013.