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At 09:35 AM 10/15/98 -0500, Robert W Cummings wrote:
darn this e mail deal I had to go back and put 18, it changed it to I
>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
eitheen years
>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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