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Showing posts from June, 2006

Cover Your Assets

Note: This feature length cover story by Chris McMahon originally appeared in the June 2006 issue of Futures Magazine. Link to original @ Futures Magazine Employees at futures broker Lind-Waldock held a party one Friday in late April to celebrate an achievement: For the first time since October of last year, funds in customer segregated accounts exceeded the amount held when Refco Inc., then parent company to Lind-Waldock, collapsed into scandal and filed for bankruptcy. For customers of regulated Refco business units, the protections afforded them under the Commodity Futures Trading Commission (CFTC) regulatory structure worked. Despite some uncomfortable moments, futures traders were able to access their funds, which were held in segregated accounts, and transfer those funds to another futures commission merchant (FCM) with a minimum of trouble. And for those who stayed with introducing brokers that cleared futures trades through Refco LLC, most were up and running again in a matt