CFTC Member Floats Insurance Fund For Futures Co. Failures

Law360, New York (August 9, 2012, 4:32 PM EDT) -- A member of the U.S. Commodity Futures Trading Commission proposed Thursday to create an insurance fund to cover futures investors when their brokerages go belly up, as happened recently with MF Global Inc. and Peregrine Financial Group Inc.

CFTC Commissioner Bart Chilton has been pushing fellow regulators and lawmakers to establish an insurance fund since MF Global collapsed last fall and in the process misplaced more than $1.6 billion in customer money. But he found little support for the idea until last month, when Peregrine imploded...
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