Statement of Commissioner Bart Chilton on MF Global Claims

December 26, 2012

I’m pleased with today's announcement that commodities customers are getting back a little more of what they lost in the MF Global debacle. I appreciate the Trustees’ work to that end.  The fact remains, however, that futures customers have not been made whole (and securities customers will have a surplus).  This just further underscores the need for a futures insurance fund.

The Futures Insurance and Customer Protection Act that I have proposed Congress consider would offer assurances for futures customers who get fleeced when an MF Global-like failure or a Peregrine Financial Group-like fraud takes place.  There are solid models for such a fund in the securities and banking worlds.  Why not futures?

Such a fund would not create a big new bureaucracy in Washington.  On the contrary, it can be done with a minimal staff and a minimal budget.  It’s a small price to pay to protect honest investors who stand the chance of getting ripped off by the unseemly dealings of a few bad actors.

Last Updated: December 26, 2012