The Commodity Futures Trading Commission’s new directors of the Divisions of Swap Dealer and Intermediary Oversight and Clearing and Risk issued a joint statement reminding futures commission merchants that they must at all times retain the ultimate authority to look to funds in one account of a customer when another account of the same customer may not have met a margin call or be in deficit, even if the accounts are under separate control. The directors issued this statement in response to industry participants questioning whether recent advice regarding the margining of multiple accounts of the same account owner issued by the CFTC and the Joint Audit Committee were inconsistent. According to the directors, FCMs must have “the discretion to determine that the facts and circumstances of a particular shortfall are extraordinary and therefore necessitate accelerating the timeline relying on the FCM’s protocol for liquidation or for accessing funds in the other accounts of the beneficial owner held at the FCM.” (Click here for background in the article “US Futures Exchanges’ SRO Organization Follows CFTC Lead and Authorizes Futures Brokers to Potentially Treat Separate Accounts of One Person as Accounts of Separate Entities for Disbursement Purpose” in the July 21, 2019 edition of Bridging the Week.) The new directors are Joshua Sterling, Director of DSIO and Clark Hutchison, Director of DCR.