"AMP's response to recent news concerning alleged improprieties at PFG"

W

Wallace

" July 13, 2012

Dear Valued Customers, In light of the recent news concerning alleged improprieties at PFG,
AMP wants to provide our customers with more specific details about our operations.

Financials:
AMP is one of the few FCM's today that does not engage in any business other than the
processing of trades for Futures and Commodity Customers. We are not dependent on interest
income or alternative investments for our profitability - we process electronic futures trades
for our customers - it's our business.

What we do not do ?
No proprietary trading
No Exchange Floor Trading - Positions Reported to Clearing Firm only every 15 minutes
(Only electronic exchange trades by AMP customers - P/L to the tick)
No exposure to mortgage backed securities
No exposure to European debt
No activity in OTC or Off-Exchange Trading (such as Forex)
No Naked Short Options Selling (Unlimited Risk) by AMP Customers

What we do ?
AMP reports its financial position on a daily and monthly basis to NFA and CFTC.

Mitigate Market Risk/Exposure:
AMP risk controls are marked to the tick and tradable markets are limited to the major liquid
markets - no exotic/illiquid instruments.

We take regulation seriously - Our History:
Zero Regulatory Actions against AMP (IB or FCM, since 2005 inception) by the neither NFA nor CFTC.
AMP Futures: http://www.nfa.futures.org/basicnet/Details.aspx?entityid=YMMH7B93DXI=&rn=N
AMP Trading: http://www.nfa.futures.org/basicnet/Details.aspx?entityid=EPGnwkgRmus=&rn=N
AMP Clearing: http://www.nfa.futures.org/basicnet/Details.aspx?entityid=k17Ne6qLDo8=&rn=N

Size:
AMP is the entire 24th Floor of the LaSalle/Wacker building in Chicago.
AMP 24 hour Help Desk is fully staffed - 15 agents during US trading hours and 4 agents during
non-US trading hours.
AMP 24 hour Trade Desk is fully staffed - 4 agents during US trading hours and 2 agents during
non-US trading hours.
AMP 24 hour Risk Department is fully staffed - 6 agents during US trading hours and 2 agents
during non-US trading hours.

Should you have any direct questions not answered, please contact me directly via email: dan@ampclearing.com

If you would like to get more information about our services visit our website: www.ampclearing.com

Sincerely,
Dan Culp
President - AMP Global Clearing "
 
I wonder why they left out they are virtually the smallest fcm out there in terms of cash on hand and customers assetts...

In the end when it comes to fraud it doesn't matter what size the firm is but coming out with a statement like that proves noting about their stability.
 
I read through that... Hmmm... Makes me feel warm and fuzzy.

Everything is about confidence and maintaining confidence. That's what keeps everything in the system together.

If I was an AMP customer that letter would make me feel quite reassured and calm the emotions. :cool:
 
The problem that confronts the AMP customer is that they are very lightly capitalized or, to put it more plainly, the principals don't have much money invested in the firm. I can deal with that particularly if I leave only three, four or five thousand dollars there and use their day trade margins to my advantage.

What I can't deal with is being treated like an imbecile. They title the section Financials and then do not deal with their financial condition. They also tell me they are not dependent on interest income. Well, since we are in an era of near zero short term rates, they better not be. Yet historically interest income was a major profit center for firms. Part of the industries problem is that the cushion provided by taking in money at zero and putting it out at three or four percent or more is not there at the moment. And it hurts.


Financials:
AMP is one of the few FCM's today that does not engage in any business other than the
processing of trades for Futures and Commodity Customers. We are not dependent on interest
income or alternative investments for our profitability - we process electronic futures trades
for our customers - it's our business.
 
Quote from Kazak_Trader:

Nobody’s safe but in my opinion AMP is looking much better than these other firms I have looked at: Rosenthal Collins Group, Crossland, Open E Cry and Velocity Futures according to Atlas Ranking.

http://www.zerohedge.com/news/first-mfglobal-now-pfg-who-next
More...

How can you take that list seriously when they put AMP and Ironbeam in front of Advantage Futures? That list is a joke and their "proprietary risk rating". Give me another laugh please.
 
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