PFGBest bankruptcy fuels calls for stronger protection of customer funds
The collapse of Peregrine Financial Group, which comes just nine months after the bankruptcy of MF Global, has raised the pressure on US regulators to boost protection of customer funds held by futures commission merchants
The sudden implosion of Peregrine Financial Group, commonly known by its brand name PFGBest, has rattled the commodities trading industry and reignited the debate over whether greater protection is needed for segregated customer funds held by futures commission merchants (FCMs).
On July 9, the industry's self-regulator, the National Futures Association (NFA), took an emergency enforcement action against PFGBest, revealing that it had discovered a shortfall of $220 million in a bank account that
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