NGFA Urges 100% Restoration of Customer Funds in Aftermath of MF Global Bankruptcy

• Whether changes are needed in the ways segregated customer funds are allowed to be invested.

• Whether the commodity exchanges themselves should bear “some responsibility for customer funds lost as a result of a bankruptcy and/or malfeasance by a clearing member of the exchange.”

Further, the NGFA said a review is needed of such issues as how frequently MF Global customer accounts were audited, by whom, and who was responsible for enforcement, as well as whether requirements were administered in a proper and timely way immediately prior to the bankruptcy filing. 

“We make no judgments or recommendations today,” the NGFA said.  “And to be clear, we are not proposing that legislation or additional regulatory authority are needed.  But the issues need to be examined carefully and quickly.”