The companies, products and regulatory developments shaping the broker industry.
The approved reform ties eligible cash interest to IORB less a charge, broadens potential Federal Reserve custody and excludes cross-margin cash. The clearing member is the recipient named in the rules.
The FCA now requires written notice and Consumer Duty compatibility before a firm retains retail client-money interest. CMC’s £23.4m group revenue line shows the economics can be material, but its closing balance cannot be used as a yield denominator.
Analysis of the 1 October implementation: eligible clearing-member cash now earns the Federal Reserve benchmark less a 10-basis-point fee, with different effects for margin and Clearing Fund balances.