Gary DeWaal, group general counsel at Newedge, stated the issue caused by Peregrine Financial Group (PFG) ability to avoid regulatory audit checks for more than 20 years. To resolve this issue, in November 2012, the National Futures Association and CME Group hired AlphaMetrix to take on the job of confirming the money FCMs say they have in their segregated accounts, with money that is held at the bank.
This solution is based on the method used by China's futures industry called China Futures Margin Monitoring Center Co. Ltd.(CFMMC).
- China Futures Margin Monitoring Center Co. Ltd. (CFMMC) on MarketsWiki (link)
- China System for Protecting Client Cash May Help U.S., NFA Says – Bloomberg (link)
- NFA and CME Group Select AlphaMetrix to Provide Data Aggregation Services (link)
Past performance is not necessarily indicative of future results. There is risk of loss when investing in futures and options. Always review a complete CTA disclosure document before investing in any Managed Futures program. Managed futures can be a volatile and risky investment; only use appropriate risk capital; this investment is not for everyone. The opinions expressed are solely those of the author and are only for educational purposes. Please talk to your financial advisor before making any investment decisions.