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Tag Archives: PFGBEST

FIA Boca Preview: Walt Lukken on the 2013 Outlook for the Futures Industry (Part 1) Interview,Regulation,Video

Walt Lukken FIA Boca

Walt Lukken has had his hands full since taking the top spot at the Futures Industry Association (FIA) in March 2012. With FIA Boca set to start on March 12, JLN editor-in-chief Jim Kharouf spoke with him about the industry over the past year, including the fallout and reaction to MF Global and Peregrine Financial Group, the outlook for brokers and why the president and CEO of the FIA believes 2013 will be better than 2012. In advance of the FIA Boca 2013 conference next week, John Lothian News traveled to Washington D.C. this week to interview Walt Lukken, president and…

Confirmations: NFA and CME’s Financial Match.com Regulation,Video

Chris Hehmeyer

The fraud at Peregrine Financial Group was uncovered in July 2012 by the National Futures Association (NFA) which used an electronic bank account confirmation system. (See Confirmations: Plugging Into Electronic Confirmations) In November 2012, the NFA and CME Group announced they would implement an electronic confirmation system for futures brokers. The system, operated by AlphaMetrix, provides a comprehensive check and match of what FCMs say they have in customer funds with what banks say they have. Chris Hehmeyer, CEO of HTG Capital Partners and chairman of the NFA, says the new system will help regulators and customers assure such a…

Confirmations: Plugging Into Electronic Confirmations Regulation,Tech / HFT,Video

Confirmations: Plugging Into Electronic Confirmations

Capital Confirmation, which runs Confirmation.com, is credited with helping to unveil the massive $215 million fraud at Peregrine Financial Group (PFG) in July 2012. The web-based audit confirmation service was hired by the National Futures Association (NFA) last year and applied its technology to PFG. After forcing PFG to use the electronic confirmation service, rather than use the traditional paper-based auditing system, PFG’s fraud was discovered by the NFA. Brian Fox, founder and chief marketing officer of Capital Confirmation, explains how this straightforward technology of providing a third party confirmation service, can help protect customer funds and restore customer faith…

Time to Restore Commentary,Regulation,Tech / HFT

Jim Kharouf

We are now well past a year since MF Global‘s collapse seriously damaged the futures industry and now trekking toward six months since the Peregrine Financial Group went down in flames, taking more customer money with it. Since November, after spending four months putting together solutions to those problems with our Restoring Customer Confidence video series, there’s been a small amount of industry action on what is arguably among the biggest threats to the futures industry’s growth – the lack of customer faith in the marketplace. It’s been the era of the four “L’s” – low volume, low volatility, low…

Coming November 15: Restoring Customer Confidence Video Series Launch Video

Restoring Customer Confidence Promo

Coming to MarketsWiki.tv November 15. Subscribe to the John Lothian Newsletter for new video alerts: Subscribe: In the aftermath of the MF Global collapse, fraud at Peregrine Financial Group and high profile high-frequency trading shocks, John Lothian News asks – how do you restore customer confidence and bring traders back? John Lothian News interviewed more than a dozen professionals in the industry to get their ideas and solutions. As these ideas become practice, or as new concepts are adopted by the industry, we will continue to add them to the site. This video series addresses solutions by category: Protection Fund,…

Hehmeyer Wins Case – Back to Business Commentary,Regulation

In July, I wrote a column about Alaron’s lawsuit against Chris Hehmeyer, the current NFA chairman, former CEO of Penson GHCO and current CEO of HTG Capital Partners. Well, the verdict is in. The judge in the Circuit Court of Cook County dismissed the case with prejudice on Wednesday, which means it cannot be re-filed. It’s final. And actually, it should not have even come to this. Alaron’s president Steve Greenberg agreed to a legally binding arbitration case with Penson, and separately with Penson’s general counsel Carl Gilmore in 2010 over the transfer of Alaron accounts held at Penson to…

John Lothian Newsletter: Exchanges Retreat on Trading Tools; Tradeweb launches ETF platform; NYSE chief laments complex markets John Lothian Newsletter,Newsletter

Fund managers and regulators are displeased with US exchanges over certain order types that they say creates an unfair disadvantage for their clients. Platform operator Tradeweb launches a new service that provides multiple price quotes for ETF products to traders. NYSE Euronext chief Duncan Niederauer wants a complete review and overhaul of the structure of US financial markets, believing that the system as a whole has become too complex to serve its essential functions.

PFGBEST: The Unanswered Question Commentary,Regulation,Tech / HFT

John Lothian

As we search for solutions to the Peregrine Financial Group crime spree and the MF Global non-criminal (so far) implosion, answers to questions about another criminal brokerage firm blow-up go unanswered. The industry has come forward with after-the-fact solutions to the MF Global issues. The regulators have quickly put in place electronic confirmation of bank statements to address the PFGBEST mess. But despite all of the concern over inexperienced or captured regulators in each of those cases, the the fact is a well-known private equity investor and a robust public accounting IPO process failed to find the ongoing fraud at…