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