CME Group wants customer money held at clearing houses

July 25th, 2012, 11:18 AM

Hi chaps

Hopefully this is the right place for this thread?

im curious about your thoughts/opinions on where you feel comfortable to have your monies kept for your trading accounts in view of recent MF Global/PFGBest debacles.

CME Group seem to be pushing to have these funds at clearing houses;

UPDATE 2-[AUTOLINK]CME[/AUTOLINK] Group wants customer money held at clearinghouses | Reuters .

I was a customer with MF Global (UK) and I still have my funds sitting with the administrators (or helping in someones summer vacation down the hamptons :-) ) with no sight of when/if I will get a penny back.

I'm not really sure how I exactly feel about this just yet but some form of central account pool is possibly more appealing to me than at your broker/s, as currently is. But how do you allocate funds for cme, nymex, eurex etc as I like to have my monies available to trade whatever instrument im on that day so still needs more thinking.

I agree though that something needs to be done to get back traders confidence [I wonder how many traders have lost confidence or if they still feel the same way?] that their funds are safe as this is No 1 for me.

Cheers and happy trading
Bry

July 25th, 2012, 11:24 AM

I think the best solution would be to give the money to Obama and let him manage it. I think it would be foolish not to.

July 25th, 2012, 12:59 PM

vegasfoster

I think the best solution would be to give the money to Obama and let him manage it. I think it would be foolish not to.

:wtf:

July 25th, 2012, 01:18 PM

brydubtrade

Hi chaps

Hopefully this is the right place for this thread?

im curious about your thoughts/opinions on where you feel comfortable to have your monies kept for your trading accounts in view of recent MF Global/PFGBest debacles.

CME Group seem to be pushing to have these funds at clearing houses;

UPDATE 2-[AUTOLINK]CME[/AUTOLINK] Group wants customer money held at clearinghouses | Reuters .

I was a customer with MF Global (UK) and I still have my funds sitting with the administrators (or helping in someones summer vacation down the hamptons :-) ) with no sight of when/if I will get a penny back.

I'm not really sure how I exactly feel about this just yet but some form of central account pool is possibly more appealing to me than at your broker/s, as currently is. But how do you allocate funds for cme, nymex, eurex etc as I like to have my monies available to trade whatever instrument im on that day so still needs more thinking.

I agree though that something needs to be done to get back traders confidence [I wonder how many traders have lost confidence or if they still feel the same way?] that their funds are safe as this is No 1 for me.

Cheers and happy trading
Bry

I agree too. If a few more brokers get belly up like this, then that would be a HUGE BLOW to the confidence of the traders. If the trading amount in the account itself if not safe, then that is a Big Issue. Something definitely needs to be done about it, before it is too late.

July 25th, 2012, 01:38 PM

indeed and also not forgetting WorldSpreads (Spread Bet firm) who also went up in smoke with a customer funds hole worth about �13m, although nit futures per se, still not good for clients confidence in the industry..!

Re-hypothecation is the word, as thats what killed the MFG euro bets and therein customers sacred money...

July 25th, 2012, 04:27 PM

I meant to say that re-hypothecation is what allowed MFG to prop up their huge exposure to the euro bets they were trading..!

July 25th, 2012, 05:32 PM

Generally good to overthink 'model' - I would like more to see

a) better controls / reporting
b) protection up to 50-100K for example through fund like CME thought about as well

July 25th, 2012, 06:04 PM

vegasfoster

I think the best solution would be to give the money to Obama and let him manage it. I think it would be foolish not to.

Yeah "Obama Futures Group" with $5.00 margins, $0.05 commissions RT and $500.00 to open an account.

traderwerks · July 25th, 2012, 09:54 PM

brydubtrade

Hi chaps

Hopefully this is the right place for this thread?

im curious about your thoughts/opinions on where you feel comfortable to have your monies kept for your trading accounts in view of recent MF Global/PFGBest debacles.

CME Group seem to be pushing to have these funds at clearing houses;

UPDATE 2-[AUTOLINK]CME[/AUTOLINK] Group wants customer money held at clearinghouses | Reuters .

I was a customer with MF Global (UK) and I still have my funds sitting with the administrators (or helping in someones summer vacation down the hamptons :-) ) with no sight of when/if I will get a penny back.

I'm not really sure how I exactly feel about this just yet but some form of central account pool is possibly more appealing to me than at your broker/s, as currently is. But how do you allocate funds for cme, nymex, eurex etc as I like to have my monies available to trade whatever instrument im on that day so still needs more thinking.

I agree though that something needs to be done to get back traders confidence [I wonder how many traders have lost confidence or if they still feel the same way?] that their funds are safe as this is No 1 for me.

Cheers and happy trading
Bry

I think it would be a great idea, but what happens when I trade on ICE ? My funds are at CME Clearing ?

CME Group wants customer money held at clearing houses

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CME Group wants customer money held at clearing houses