CFTC Access To Firm Accounts Could Prevent Future Peregrines

Law360, New York (July 25, 2012, 7:15 PM EDT) -- Weeks after Peregrine Financial Group Inc. was revealed as a fraud in the latest scandal to rock the futures industry, U.S. financial regulators are demanding electronic access to brokerage accounts, a move experts say could help ensure the protection of customer funds and prevent another multimillion-dollar theft.

In testimony before a U.S. House of Representatives committee Wednesday, U.S. Commodity Futures Trading Commission Chairman Gary Gensler said his agency and industry self-regulator the National Futures Association were working to gain online, look-only access to bank balances held...
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