Futures regulation
What is Segregated Customer Account Funds regulation and how does it protect retail capital from broker operational default?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Segregated account rules require FCMs to hold customer futures funds separately from firm capital, protecting client money from broker insolvency or misuse.
How it works
Under CFTC Regulation 1.20, segregated funds cannot be commingled with firm assets, intended to shield customers if the FCM becomes financially distressed.
An example
Customer margin deposits are held in a segregated bank account.
Risk & limitations
Segregation reduces but has not always eliminated shortfall risk historically.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.