Bloomberg News

Client Funds Protected at 70 Futures Brokers, U.S. CFTC Says

January 26, 2012

Jan. 25 (Bloomberg) -- Customer funds are properly segregated at 70 futures brokers, the U.S. Commodity Futures Trading Commission said in announcing results of reviews that began last year after MF Global Holdings Ltd. collapsed and as much as $1.2 billion in client money went missing.

The review is a “snapshot” of the industry’s compliance with regulations and didn’t involve a “lengthy examination” of the brokers, according to a statement from the CFTC. The review relied on brokers’ records and didn’t involve regulatory officials independently confirming balances of customer funds at other entities. The agency said the review wasn’t intended to serve as an industry audit.

The review was conducted by the CFTC, CME Group Inc. and the National Futures Association, the Chicago-based self- regulatory organization for the futures industry.

The CFTC, Securities and Exchange Commission and Justice Department are investigating the collapse of MF Global. Jon S. Corzine, former chairman and chief executive officer of MF Global, told congressional lawmakers last month that he had no intent to misuse customer money and doesn’t know where it went.

--Editors: Maura Reynolds, Gregory Mott

To contact the reporter on this story: Silla Brush in Washington at sbrush@bloomberg.net

To contact the editor responsible for this story: Maura Reynolds at mreynolds34@bloomberg.net


Cash Is for Losers
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus