Are my funds Segregated?

Are my funds Segregated?

Yes, your funds are segregated from the working capital of our FCM's.  In order to comply with CFTC 1.25, clearing firms must ensure proper segregation of customer funds. More information can be found below:

  • All customer funds for trading on designated contract markets (exchanges) must be kept apart (“segregated”) from the futures commission merchant’s (FCM’s) own funds—this includes cash deposits and any securities or other property deposited by such customers to margin or guarantee futures trading.
  • Segregated accounts must be titled for the benefit of the FCM’s customers.
  • Acknowledgements must be provided that would preclude a bank or clearinghouse from recognizing a right of offset against the account for the FCM’s debts.
  • Customer funds in segregation have a bankruptcy preference in the event of FCM insolvency.
  • To the extent that customer funds are not sufficient to pay customer claims, the remainder of what customers are owed will participate pro rata in the distributions to unsecured creditors of the bankrupt FCM.

Regarding the NFA's obligation to hold FCMs to this, on August 16, Chicago - The Board of Directors of National Futures Association (NFA) today approved amendments to NFA Financial Requirements that will require each futures commission merchant (FCM) to provide its Designated Self-Regulatory Organization (DSRO) with view-only access via the Internet to account information for each of the FCM's customer segregated funds account(s) maintained and held at a bank or trust company. The same requirement would apply to the FCM's customer secured account(s) held for customers trading on foreign futures exchanges.

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