Without any doubt MF Global will file for bankruptcy, here is why:

Discussion in 'Stocks' started by crgarcia, Mar 17, 2008.

  1. buzzy2

    buzzy2

    If you trade futures at MF Global, there's no need to freak out. Segregated Accounts.

    Segregated account: An account separate from brokerage firm accounts. Segregated accounts hold customer funds so that if a brokerage house becomes insolvent, the customers’ funds will be readily recognizable and will not be tied up in litigation for extended periods of time.
     
    #21     Mar 18, 2008
    Share
  2. gapellegrini

    gapellegrini

    Hi to all,



    I have been thinking about segregated accounts and I believe that if the FCM can’t use the client’s money on the segregated account why they pay interest on this money? If they pay interest I believe they are using the money to do whatever they want and the segregated account is not 100% safe. Someone agree with me? Do you believe Tbills on the account are safer? Any opinions are welcome.



    Regards
    gapellegrini
     
    #22     Mar 18, 2008
    Share
  3. yip1997

    yip1997

    most future accounts are not segregated accounts. FCMs are not regulated by SEC and they are not required to have segregated accounts for their clients.
     
    #23     Mar 19, 2008
    Share