We were glad to see last week’s announcement from the NFA that they will be requiring all FCMs to give always-on access to view their segregated accounts online, but it’s still possible that someone will figure out a way to get by the new electronic confirmations. That’s why we’ve been calling for a SIPC-style insurance plan for the futures industry since last November – and now, it seems this proposal is finally being taken seriously.
Category: Macro Commentary
20
Aug
2012
16
Aug
2012
Bain Capital: Not So Alternative
As election season moves into full swing, Romney’s record as CEO of private equity firm Bain Capital has been thoroughly dissected. Beyond the politics, some of the more recent commentary is far more interesting to us: Bain’s performance compared to other alternative investments.
16
Aug
2012
Corzine to Continue with Business as Usual?
For those who were hoping that Jon Corzine would face criminal prosecution similar to what is being pursued with Russ Wassendorf, Sr., we’ve got bad news.
14
Aug
2012
PFGBest Update: Wolf in Sheep’s Clothing?
Remember last week, when we talked about the sweep of margin out of an FCM and into a more traditional account as a means of protection? And how the legalities of the situation may well complicate the situation? Well, it looks like an unlikely player may just be stepping up to the plate and dancing around the legal concerns.
13
Aug
2012
PFGBest Update: How far did the apple fall from the tree?
Since the PFGBest scandal broke, investors have been calling for heads on a platter. They have wanted Wasendorf Sr. arrested (done), the NFA disbanded/sued/held liable (not yet), and pray for US Bank and their deep pockets to have some liability so they pay out investors (fingers crossed). Underneath all of that, however, has been the question of just how much others at PFGBest (and especially Wasendorf’s son – Russ Wasendorf Jr.) knew about the fraud. Well, we may have a chance to find out.
10
Aug
2012
PFGBest Update: Give Us Some Options, Already
We’re starting to feel like the perpetual bearers of bad news. The narrative in the post-PFGBest futures world has focused on how to protect clients moving forward. All options are being considered- industry wide insurance, new penalties for misdeeds, and so forth. One of the options we looked into was the idea of having a separate, SIPC or FDIC account set up to hold client funds, with margin being swept to and from the clearing firm on a daily basis. But as was discussed at the CFTC roundtable, that’s not even an option.
10
Aug
2012
PFGBest Update: No More Stalling
In the discussion of what reforms are necessary to protect futures industry participants moving forward, we have advocated for passing regulations which unequivocally place segregated account clients in front of all creditors in a bankruptcy. A recent decision in the Sentinel case makes this reform more necessary than ever.
10
Aug
2012
Giving Alternatives a Bad Name, Part 2
A while back we criticized the media’s coverage of alternative investments – the fact that wine, antique coins, and race horses are frequently on lists of “alternative” investments. In our opinion, exotic alternatives are more likely to get retail investors fleeced than anything else. Collecting art or antique cars isn’t necessarily a bad thing… it’s just not something you should be betting your retirement on. The latest push? Diamonds.
09
Aug
2012
PFGBest Update: Courage of Conviction
We haven’t pulled any punches in our criticism of the NFA following the PFGBest scandal. We do our best to make the arguments on behalf on the industry, but we’re just one voice. An email we received today may shine light on why many firms are remaining quiet.
09
Aug
2012
4 Concerns for Today’s CTFC Roundtable
The CFTC roundtable on regulatory reform has revealed a plan to implement SIPC-style coverage for futures investors, but that’s not all we’d like to see. Here are the top concerns we hope to see addressed.
