Section 1 Short title
This Act may be cited as the “Risk Hedging Protection Act of 2014”.
Risk Hedging Protection Act of 2014
A BILL
To amend the Commodity Exchange Act to ensure futures commission merchant compliance.
Sec. 2 Futures commission merchant compliance
by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately;
by striking “Sec. 4d ” and all that follows through “It shall be unlawful” and inserting the following:
“Sec. 4d. dealing by unregistered futures commission merchants or introducing merchants prohibited.
“(a) Registration requirements and duties
“(1) In general—It shall be unlawful”
by adding at the end the following:
“(2) Residual interest requirement—Any rules or regulations requiring a futures commission merchant to maintain a residual interest in accounts held for the benefit of customers in amounts at least sufficient to exceed the sum of all uncollected margin deficits of the customers shall provide that a futures commission merchant shall meet the residual interest requirement as of the end of each business day calculated as of the close of business on the previous business day.”
Conforming amendments—
Section 4d of the Commodity Exchange Act (7 U.S.C. 6d) is amended—
in subsection (b), by striking “paragraph (2) of this section” and inserting “subsection (a)(1)(B)”; and
in subsection (h), by striking “Notwithstanding subsection (a)(2)” and inserting “Notwithstanding subsection (a)(1)(B)”.
Section 15(c)(3)(C) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(c)(3)(C)) is amended by striking “4d(a)(2)” and inserting “4d(a)(1)(B)”.