Found this link http://www.attaincapital.com/managed_futures_newsletter/271 any rumours out there ? is MF Global safe in this crazy world ? how about other FCM:s
"Should your account funds be held in a segregated bank account (all client funds are segregated unless requested by the client in writing), in the unlikely event of the insolvency of IG Group Holdings Plc, your funds are fully protected. In such an event, you would be entitled to obtain your full account balance. If you have signed a Title Transfer form to authorise transfer of your funds to a non-segregated bank account, your funds are not protected and could potentially be accessed by Creditors in the event of insolvency. In the event that the âdeposit takersâ (Banks with whom we hold clientsâ funds) collapse, all client money â segregated and non-segregated would be lost. However, the FSA Compensation Scheme protects and guarantees the first £35,000 of the clientsâ money. So, if you hold less that £35,000 with IG, you will be entitled to all of your money if our bank collapsed. Further information about the treatment of your funds by IG can be found in our Customer Agreement (Client Money, section 17). Further information about the treatment of your funds by IG can be found in our Customer Agreement (Client Money, section 17). Should you have any further queries or requests, please do not hesitate to contact us. Kind regards, Lizzie Counihan IG Index plc Client Services Friars House | 157-168 Blackfriars Road " So if the bank that holds my cash in a segregated account goes under the cash is lost ?? Thanks for reply
Your biggest threat is a few big clients blow up. Your cash is not segregated from the other clients, and hence say one client blows up owing more than he had on account then either the broker will make up the shortfall from their own funds or the prime broker can use other clients funds in the segregated account, to make up the shortfall. As for MF Global - I had a decent size account with them but afraid I closed it back at the start of the year when the share price collapsed 80% one afternoon. My view was that there are plenty of palces I can trade through and it wasn;t a risk I needed.