CFTC Chilton Suggests Post-MF Global Fixes

During his morning keynote at this week's TradeTech conference in Manhattan, US Commodity Futures Trading Commission (CFTC) proposed a few market and regulation changes that will reduce the damage from firm failures and avoid another MF Global.

"First, we have to do a deeper dive in terms of regulation. We have to have to do the Tom Cruise 'show me the money,' rather than having the firms say they have the funds," says Chilton.

Next is to take a page out of the UK market's play book and let the client choose the level of risk for their funds deposited with firms.

"If they want their money just to sit there, they should have that choice," he says.

Finally, Chilton says that the futures markets should institute an insurance systems for clients of failed firms that would be similar to other markets.