MBF Clearing Corp

http://www.cftc.gov/PressRoom/PressReleases/pr6204-12

Not your run of the mill retail broker, though they do apparently accept "highly qualified" retail accounts.

 

CFTC was busy today.

 

I have no money in futures accounts until the industry gets the equivalent of the SIPC that equity brokers have. end of subject.

 

MBF Clearing is another one of the nonclearing FCMs that insists on using the word "Clearing" in the firm name.

It seems that MBF Clearing was clearing their trades through MF Global.

Here is their side of the (sad) story:

"March 13th, 2012: During the financial crisis, MBF Clearing Corp. invested customer segregated money in a U.S. government money market fund in the strongest bank in the world, JP Morgan. Today the CFTC filed a complaint alleging that the JP Morgan account did not meet the CFTC's requirements for a customer segregated account. The complaint admits, however, that MBF Clearing Corp. was informed by JP Morgan on the actual account statements that JP Morgan sent to MBF Clearing Corp., that the account was, in fact, a “Commodity Customer Segregated Bank Account.” What the Complaint fails to say is that MBF Clearing Corp. had placed its customer funds into the JP Morgan government money market account two days after Lehman Brothers filed for bankruptcy, for the sole purpose of protecting its customers' funds by depositing them in the safest bank in the world and in the most secure investments, namely U.S. government securities. As soon as MBF Clearing Corp. was notified by the CFTC that the JP Morgan account might not qualify for segregation, MBF Clearing Corp. moved all of the customer funds out of this account and reported what had occurred to its designated self-regulatory agency, the CME Group, Inc. Not a nickel of customer money was lost.

We are disappointed that the CFTC has chosen to address this matter through an enforcement proceeding, particularly since MBF Clearing Corp. and its customers were, like many others, victims of the failure of MF Global to the tune of millions of dollars. Consistent with its approach of protecting its customers, however, MBF Clearing Corp. took the MF Global losses onto itself and made all of its customers whole."

 

Don't hold your breath while waiting.

And if a FIPC ever happens you will have to pay for it.

 

Mark B. Fisher, or no relation?

 

One and the same. If the quote above is indeed true,

"Consistent with its approach of protecting its customers, however, MBF Clearing Corp. took the MF Global losses onto itself and made all of its customers whole",

then it speaks volumes about the man and his associates.

 

Funny how the regulators always seem to do a good job going after and the small players.

Different story for the bigger boys........