FCM Risk Assessment – Trust and Verify

The recent insolvencies of MF Global and PFGBest, along with the near miss of Knight Capital, have sent customers scrambling to confirm the safety of their property and the financial health of their brokers. Prior to October 2011, most futures customers never gave the solvency of their FCM a second thought. Customers now find themselves on the hunt for the canary in the coal mine. In a financial world fraught with rogue traders, Ponzi schemers and high frequency meltdowns, what is the best approach for detecting a Corzine or Wasendorf at your FCM? The quick answer is: there is no…

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