RE: [RT] Is there an "SIPC" for Futures Brokers?

["Chris Baker" <chrisbak49@xxxxxxx>]

<SPAN 
class=869415117-14022002>I don't know about the Snively situation.  
However <SPAN 
class=869415117-14022002>I would have thought Snively would have been sued by 
the CFTC and the business would have become defunct, more likely 
bankrupt.
<SPAN 
class=869415117-14022002> 
Then if Snively were 
a member of something like the "SIPC", it would have reimbursed customers 
for their unauthorized account losses, and then tried to collect from Snively 
and/or INTRUST.  That process could take years, but customers would have 
their losses reimbursed very quickly.
<SPAN 
class=869415117-14022002> 
However more likely 
Snively could never have become a member of an "SIPC" like organization, 
which could have been an immediate red flag to potential customers.  

<FONT 
face=Arial size=2><FONT face=Arial 
size=2> 
I would think an 
SIPC type of organization would have to have the power to look over futures 
brokerages books, in order to insure compliance with the terms of 
membership.  Perhaps futures brokers aren't yet at a stage to accept 
that.     <SPAN 
class=869415117-14022002>
<BLOCKQUOTE 
style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid">
  <FONT face=Tahoma 
  size=2>-----Original Message-----From: Bill Daniel 
  [mailto:bogeybunky@xxxxxxxxxxxxxx]Sent: Thursday, February 14, 2002 
  11:45 AMTo: realtraders@xxxxxxxxxxxxxxxSubject: RE: [RT] 
  Is there an "SIPC" for Futures Brokers?
  <FONT face=Arial color=#0000ff 
  size=2>Unfortunately, if I am reading Tim Morge's post correctly a "futures 
  SIPC" would not have helped in this case.  Even though Snively is a FCM 
  he was not authorized to hold customer funds and the allegation is that he did 
  not clear trades through CME, CBOT, or any other entity for that matter.  
  He is alleged to have simply put the clients' funds into his own account 
  expecting to pocket the client losses.  In other words, he did not fail, 
  he mishandled customer funds.  The recourse now seems to be through the 
  courts and whatever assets he may have.  Personally I hope the NFA has 
  frozen sufficient assets to recover the money for clients because I am one of 
  those "suckers".
  <FONT face=Arial color=#0000ff 
  size=2> 
  Bill 
  Daniel



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