On Apr. 14, ForecastEx issued notice on interest collection changes.
ForecastEx issued notice 2025-22 to members on ForecastEx Rule 612 amendments.
Self-certified amendments to make two significant changes to how ForecastEx handles interest it earns on collateral in customer and non-customer collateral accounts.
Proposed Amendments
Formalized guidance in NTM 2024-01, which states ForecastEx will return all interest it earns on cash in collateral accounts to members in the form of a monthly coupon.
Require members return portion of incentive coupon paid by ForecastEx to customers.
In particular, customers who purchase Forecast contracts now earn coupon payments which are paid monthly, accrue daily; specified minimum members will from coupons.
Provided a minimum daily rate of Coupon rate = (EFFR-50bps)/2; where Effective federal funds rate (EFFR) is published by Fed (NY); members may pay over minimum.
Additional conforming changes to ForecastEx risk disclosure, contract term, conditions.
Effectiveness
These rule amendments become effective on Apr. 28, 2025.
