Quote from Jachyra:
Actually, I don't have a recent source, so I guess I should have phrased it differently. My statements were based off of a phone inquiry I made to the NFA back around 2001. I was trying to find out if they maintained any statistics regarding aggregate amounts of customer funds lost due to firm insolvency, and was told (over the phone) essentially what I stated in my first post.
It would be interesting to see if any of the registered representatives that are sponsors and/or active on these forums can add their 2 cents.
The NFA is not telling the whole story. The major past problem in the futures industry has been the failure of clearing firms. Customers eventually got their money back, but in the meantime their accounts were frozen. A frozen account not only means no access to your cash, but also no ability to close out open positions or have any input into when the exchanges and/or clearing houses close out your open postions.
The Volume Investors clearing firm failure in 1985 was a major mess and embarrassment for the COMEX. The firm failed in March, 1985 and here is a news story that appeared on September 12, 1985.
"The Commodity Exchange said a Federal District Court had approved an agreement that would lead to the full restoration of funds owed to customers of the Volume Investors Corporation, a former Comex member.
Volume Investors was placed in receivership in March because of losses sustained during volatile gold market activity. The agreement calls for the Volume Investors' principals, Charles E. Federbush and Owen J. Morrissey, to deposit $4.1 million with the firm's court-appointed receiver.
These funds, together with the $10.4 million already held at the firm, would be used to meet the $13.7 million owed by the company to about 100 nondefaulting customers."
So 6 months later 100 customers were still waiting for their money and most of those 100 customers were exchange members.
