question about uninsured futures brokers

Discussion in 'Retail Brokers' started by john12, Aug 19, 2007.

  1. john12


    what really pisses me off is why is one's money in a futures account ever unsafe as one recieves no interest income so why is my money ever in jeapardy? if a member broker goes under i thought the cme steps in to make the account whole? also why are deposits at futures brokers not eligible for sipc?
  2. No, the CME is not required to step in and to make a customer account whole. If a futures broker goes bankrupt, customers can lose some or all of their accounts. Futures customers have no insurance to protect them. The purpose of SIPC is to promote stock market investment, not speculation in futures and commodities markets. This is why Congress did not enact SIPC protection of futures accounts.