CFTC to adopt risk-based audits

The US Commodity Futures Trading Commission is proposing to move toward a risk-based approach to conducting audits and developing an appropriate oversight framework for futures clearinghouses, the regulator's chairman Jim Newsome told the FIA/FOA conference last week.

"I believe that moving from a strictly compliance-based approach to a risk-based approach can better focus the resources of the Commission and the self-regulatory organizations for maximum effectiveness," he said. The commission recently initiated the...