As we are all well aware, the last two years have been the most challenging for the futures industry in the almost 80 years the two of us, collectively, have been in the business. The collapse of MF Global and the uncovering of the Peregrine Financial Group (PFG) fraud brought about the questioning of systems and procedures believed to be safe
How about those traders so faithful of the futures industry that they left millions in their MF Global account because they though the guarantee of segregation was safer than the limited FDIC guarantee?
There are four futures exchanges in China that list 31 commodity futures contracts and one financial futures contract. All major commodities, some of which have the highest markets share globally, are listed except for crude oil.
It’s ironic that I’m writing this on the day the insurance study commissioned by the industry after the MF Global and PFG blow ups was released. Ironic because if implemented in some form, it would mean more costs and more rules for futures commission merchants (FCMs) and probably their customers.