In an open meeting, the CFTC invited regulators, exchanges, brokers, money managers, dealers, and academics to discuss ways and means to ensure customer collateral protection in the wake of the MF Global collapse.
The Commission and participants discussed proposed regulations, including keeping more client funds at clearing houses, requiring brokers to keep a buffer of excess customer funds on reserve, creating an insurance fund to reimburse clients who lose money in a default, and having broker chiefs sign off on large transfers of money that could potentially belong to clients.
Panel members were at odds over the rules’ efficiency, and failed to agree on deals for broadly popular ideas. For instance, members debated how often brokers should report customer fund investments, to provide transparency. The Futures Industry Association said it would prefer if brokers report investments monthly. CME Group said it was looking at a proposal for daily reports.
Panel members also quibbled over plans to safeguard customer money in over-the-counter swaps trading for futures. According to Reuters, Tom Hammond, president of ICE Clear US, said the commission and the industry would be “hard pressed” to explain why the OTC model for large hedge funds “can’t be applied to farmers, ranchers, and cotton growers in the U.S. if it adds extra protection and it’s cost effective.” Tim Doar, a CME Group Inc managing director, said he was not wholly convinced that the OTC model did protect customers. Others protected additional costs.
If you view market volatility as an opportunity to purchase more stock at a favorable price, make sure you look beyond the ticker symbol to confirm you are buying the right company. Many companies have similar names. […]
One of the best ways you can protect your investment portfolio is to monitor your holdings and activity. You should make it a habit to review online or paper account statements and trade confirmations on a regular basis. You should review your statement as soon as you receive it to confirm it correctly reflects your investment decisions and any actions you made or authorized during the time the statement covers. […]
October 1-7, 2019 is World Investor Week, a global campaign to raise awareness about the importance of investor education and protection. U.S. securities regulators offer these key messages for Main Street investors. […]
Financial fraud routinely follows on the heels of disaster. Hurricanes and their aftermath are no exception. We are issuing this Alert to warn investors that investment scams may come your way touting stocks and other investments with the promise of huge gains in the wake of major hurricanes. […]
FINRA and the SEC’s Office of Investor Education and Advocacy are issuing this Investor Alert to inform investors about social sentiment investing tools and highlight their risks. This Alert provides tips to consider before using tools that analyze or aggregate information from social media sources to make investment decisions or attempt to predict changes in the stock market’s direction or in the price of a security. […]
FINRA is aware of a recent scheme that involved an unregistered individual impersonating a registered investment professional to lure in potential investors. This scammer created a fake version of a public FINRA BrokerCheck® report of a legitimate broker—picking an experienced broker with a spotless regulatory record. […]
Fake checks purported to be issued by FINRA appear to be back in circulation in 2019. The checks are counterfeit. Our updated Alert warns the public about job-search scams in which people who respond to ads or online job postings receive checks that appear to be from legitimate companies—including FINRA. […]
We are reissuing this alert because, as interest rates have increased in recent months, so have calls to FINRA from investors concerned that promotions for higher-than-average CD rates are in fact pitches for high-commission investment products. […]
FINRA is issuing this alert to inform investors that investments in digital assets, such as ICO tokens and cryptocurrencies, can involve significant uncertainty, as well as risks that are different from more conventional assets like stocks or bonds. […]
Fraudsters continue to impersonate FINRA executives, offering bogus investment "guarantees" to investors as part of an advance-fee scam. Read more about the lengths these fraudsters go to in creating a false sense of security. […]
Washington, DC—FIA today joined Managed Funds Association, U.S. Chamber of Commerce, Securities Industry and Financial Markets Association, American Bankers Association, American Cotton Shippers... Washington, DC - FIA today announced the election of new directors to its board at the annual board of directors meeting. The board added Paul Anderson of Deutsche Bank, Samina Anwar of...Washington, DC – Today, FIA President and CEO Walt Lukken made the following statement after the CFTC issued several no-action letters that give the derivatives industry flexibility to deal with...With the health and well-being of our society in the forefront of our minds, FIA has implemented several measures to keep members informed of issues related to the Coronavirus (COVID-19) and to...Washington, D.C.--FIA today released a study on trading and clearing trends in derivatives markets. The study assesses market sentiment towards several major market structure trends, including the...I want to thank FIA members and Boca attendees for their understanding and support of our decision to cancel the 45th Annual Boca International Futures Industry Conference due to the global...On Monday, March 9, 2020, FIA submitted a comment letter to the CFTC in response to its proposed rule regarding the cross-border application of the registration thresholds and certain requirements...(Feed generated with FetchRSS) […]