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Your funds are held by a Futures Commodity Merchant and there is no SIPC for
futures. The CFTC publishes a quarterly spreadsheet with FCM capital and
customer balances ... your best protection is to insure that the FCM capital
ratio is safely above the 4% minimum.
Earl
----- Original Message -----
From: "Chris Baker" <chrisbak49@xxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, February 14, 2002 8:32 AM
Subject: [RT] Is there an "SIPC" for Futures Brokers?
> SIPC is the Security Investors Protection Corp., of which almost all
> stock brokers are members. The SIPC provides protection in case the
> stock broker fails. After reading the recent post on the INTRUST saga
> I was wondering why futures brokers don't have their "SIPC"?
>
> Looking at the SIPC's web site: http://www.sipc.org the SIPC seems
> to be quite busy processing investor claims from failed stock brokers.
> In fact the SIPC claims 99% of eligible investor claims are paid out.
> You can even look up the members of the SIPC to make sure your stock
> broker is a member of the SIPC. However the SIPC excludes futures,
> currency, and other transaction not under the SEC.
>
> However I gather from these INTRUST posts that the futures broker
> failed, and that the account holders at that futures broker lost some
> of their account capital due to the failure of the futures broker.
> Account holder seem to have been battling in court for years to try to
> get their capital back.
>
> So that raises the question whether futures brokers carry the same
> type of insurance as stock brokers do - in case the futures broker
> fails? For example is there an "SIPC" for futures brokers? If not
> how much of the capital for an account at a futures broker might be
> lost if a futures brokers fail?
>
>
> > -----Original Message-----
> > From: charles meyer [mailto:chmeyer@xxxxxxxx]
> > Sent: Wednesday, February 13, 2002 10:05 PM
> > To: realtraders@xxxxxxxxxxxxxxx
> > Subject: Re: [RT] GEN: INTRUST EMBEZZLEMENT - Insurance?
> >
> >
> > Hi-
> >
> > Having insurance and being able to collect on the policy
> > are two different
> > issues. There are usually limitations and exclusions. The
> > first thing the
> > insurance company will do is go to their legal department
> > and try to find a
> > way
> > out of paying the claim. It may go to court and then take years to
> > collect;
> > assuming a favorable outcome. From a practical standpoint;
> > I simply don't
> > trust this type of coverage for fraud. But what you have
> > outlined below may
> > be different from the type of fraud that can occur
> > elsewhere; and from the
> > various counter parties involved.
> >
> > Chas
>
>
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