Has anyone contacted their broker about concerns for their futures account? I have been thinking of doing this, but have not had time to compose a letter yet or know what exactly to ask. I'm with TradeStation and I know the bank they use is JP Morgan. That's enough cause for me to have concerns.
“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” - Sun Tzu
And any idea how I do get any information about who owns who and who is behind who?
Any way, I think the law in the States has to be changed very quickly in that way, that such careless, greedy and wrong headed people no more can touch any segregated accounts for any of there purposes. Not today and no more in any case in the future. Customer money is customer money and not buffer money for any ideas of any CEO's
Why did Corzine not put in his own money to make the company the way he wanted it to become?
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I'm not sure who to recommend blindly as I don't know what your situation is but what I do recommend is simply talking to a few FCM's and having a conversation with them about what that firm's core business is. There are a lot of smaller firms out there that are just doing the plain vanilla trading and clearing for their clients. Here's the CME link to it's Broker Directory.
I agree that the regulation should be enhanced and enforced. Why hasn't anyone gone to jail from MF? Oh yeah, that's right, Corzine is a former CEO of GS (Vampire Squid) and the former Governer of New Jersey, lol! As for why Corzine didn't put his own money into the firm, not sure really. I do think it's a bit of a red flag.
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It is scary that customer segregated funds may not be segregated and that what looks to be a reputable broker can so easily violate the rules.
Why its best to only keep minimum amount you need to trade with in futures account and keep rest in an FDIC insured bank account. You can always wire money quickly into futures account if needed. If have large amounts needed to trade should even consider multiple accounts with different clearing houses.
This is a definite reminder that we are in a risk mitigation business. Even have to take measures to spread out your risk among financial institutions because never know when next fraud will happen.
The futures industry needs to get on top of this and find some way to "really" make sure these funds are segregated and erect a wall of checks and balances where this does not happen again. I thought that wall existed but obvious it does not. Just so ridiculous this can even happen.
I feel bad for people locked out of their funds that they may never see again. Could happen to any of us.
"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
Last edited by liquidcci; November 18th, 2011 at 04:43 PM.
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