Shipkevich Bitcoin and ICO Attorney
Felix Shipkevich July 23, 2012

In the wake of scandals at MF Global and Peregrine Financial Group (PFG) involving the losses of large amounts of customer segregated funds, the National Futures Association (NFA) has announced that it will review how it audits the way FCMs treat such funds.

Coming months after a similar chain of events at MF Global, fallout from the scandal has undermined faith in the NFA’s ability to perform its duties as a designated self-regulatory organization (DSRO). In response to these concerns, the NFA has hired law firm Jenner and Block to conduct a review of its audit practices, as well as how they were applied to PFG, to assure that the procedures in place are sufficient and that they were followed correctly.

Further underlining the pressure being put on regulators, the CFTC has announced an emergency meeting of its Technology Advisory Committee, scheduled for July 26, where it will consider ways for customers and regulators to monitor customer segregated funds in real time.

Read more about the NFA’s announcement.