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CLLA NEWSWIRE | FROM THE CLLA NEWSWIRE
FIA Tells Senate Panel Bankruptcy Code, CEA Are Well-Suited to Protect Customer Funds
David Goch, Washington Legislative Counsel | June 29, 2012
In response to the request from Senate Agriculture Committee Chairman Debbie Stabenow (D-Mich.) about customer fund concerns, the Futures Industry Association said in a June 14 reply letter that it couldn't identify any changes to the Commodity Exchange Act or the Bankruptcy Code that would help protect customer funds on deposit at futures industry intermediaries.
The FIA also passed along several recommendations that it initially released in February -- including that that FCMs provide customers with more disclosure about the segregation of their funds; that FCMs undertake additional reporting obligations and that they be required to enhance internal controls.
The recommendations were made by an FIA task force formed to address issues raised by the bankruptcy of MF Global Inc. and the loss of up to $1.6 billion in customer funds.
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