An Examination of CFTC Rule 1.71

The Commodity Futures Trading Commission (CFTC) has proposed rule 1.71 that establishes conflicts of interest requirements for futures commission merchants (FCMs) and introducing brokers (IBs). The proposed rule is meant to deter non-research employees such as sales and trading personnel from influencing the content of research reports prepared by research analysts employed at the same company or an affiliate. The CFTC had a comment period which closed January 18th. There is no timeline for when a final rule may be published. The proposed rule was brought on by Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act…

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