NFA takes disciplinary action against Chicago futures firm December 6, Chicago - National Futures Association (NFA) has taken a disciplinary action against Professional Market Brokerage, Inc. (PMB), a futures commission merchant located in Chicago, for <b>failing to meet minimum capital requirements</b>. Under the terms of the action, PMB is prohibited from soliciting or accepting any additional customer accounts or customer funds. PMB is also prohibited from accepting or placing trades for accounts except for liquidation of existing positions and from distributing, disbursing or transferring any funds without the prior approval of NFA. The enforcement action will remain in effect until PMB has demonstrated to NFA's satisfaction that it is in complete compliance with all NFA requirements. NFA is a congressionally authorized self-regulatory organization for the U.S. futures industry. This probably doesn't effect clients since Refco bought their clients recently.
PMB is no more. Its just a shell. Until Refco rolls over all the accounts and the whole buyout process is complete then the NFA has restricted funds from being taken away so no one inside can steal money. From what Ive been told it is a normal formality. Youre right it doesn't affect any old PMB clients and you can still open an account with Refco. Im not exactly exited about the whole Refco buyout but things are supposed to remain the same so i guess it doesnt make much difference.
Ive just heard that they are trying to take over the futures clearing industry and that they dont play fair. Its their way or the highway. I dont like it when to much power becomes centralized. I dont think it works out well for the little guy to often.