In the months and days since MF Global’s collapse and the Peregrine Financial Group’s fraud, some have argued simply for more transparency from futures commission merchants (FCMs). Scott Gordon, chairman and CEO of Rosenthal Collins Group, said his firm publicly discloses how customer funds are being invested and held by the firm.
In Rosenthal Collins’ case, the firm reports its cash deposits held at US banks, funds held in US Treasury securities, as well as its how much is being held by clearing houses and clearing brokers and US banks. This type of transparency could be the difference in building customer trust or losing it.
Daily Reports Resources
Customer Protection Regulations on MarketsReformWiki (link)
Rosenthal Collins Group’s Daily Update on RCGDirect (link)
Futures Magazine Industry Leaders Roundtable, December 2012 (link)
A Layman’s Guide to Regulation 1.25 (link)
CFTC Final Rule: Investment of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations on MarketsReformWiki (link)
Segregated funds on MarketsWiki (link)
Scott Gordon on MarketsWiki (link)