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This question always comes up as it should after something like this
happens. The rules of reporting are very strict and allow a decent buffer
because customer funds. The exchanges have high financial standards
in regards to its clearing members and provides good safety as a monitoring
devise for client funds. The reporting levels are met daily and no business
can be done if a firm can't meet its reporting requirement.
Clearing firm in commodities do not have government protection like
securities do with SPIC and account insurance. I have been doing this I
years and seen many firm go under and I have not heard of any client ever
losing money because of it. Usually other firms step in and take over
without even an interruption in trading.
That's the extent of my knowledge along these lines. As far as any legal
alternatives I don't believe there is any presidents to go by concerning a
default of a clearing firm in regards to customer funds.
Robert
, DStan34930@xxxxxxx wrote:
>6 mil in bonds and who knows how much in Yen.
>
> Sounds like LFG is not screening it's big money clients very well.
>
> Any legal minds care to expound on the events that take place when a
>clearing firm defaults and the recourse clients have? How clients can
>monitor the liquidity of their clearing firm? etc.
>
>dbs
>
>
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