PFGBest fraud details come to light, files for bankruptcy

Industry reaction

The reaction from the industry has been shock and dismay.

Attain noted in a blog that swift, decisive action is necessary to keep this travesty from becoming the final nail in the coffin of a marketplace that serves as a heartbeat of our global economy.

To combat a potential exodus of customers several FCMs has posted letters to customers trying to allay their fears that money is not safe in futures.

Dennis Dorman, president and CEO of Dorman trading, wrote, “The MF Global situation shocked all of us, and now we have what appears to be a similar situation with PFG. The damage to our industry may take years to repair. I want to assure you that what transpired at these firms will not happen at Dorman Trading.

R.J. O’Brien chairman and CEO Gerry Corcoran wrote, “We at R.J. O’Brien (RJO) recognize that you may have questions about how we safeguard your assets and ensure the financial stability of our firm. I assure you that we remain committed to earning your business and confidence day after day.”

The letter includes a list of bullet points detailing due diligence procedures and distinguishing RJO from some of the policies that led to problems at MF Global and PFG.

Rosenthal Collins Group also attempted to provide reassurance and included a chart detailing how it invested customer funds and a link to its 2011 Audited Financial Statements.




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