Futures Account with insurance?

[TGregg]

BTW, I read on one brokers page that regulations require client futures accounts to be "separate" (which has a special legal meaning) from the clearing house account(s). Precisely what that means, I do not know. But it sounds better than "We dun has all the monies in one big pile and when dare be nun left, dare be nun left, mon."

 

[crazy_trader]

From what I have found out, at least in USA, client fund are separate from firm fund. But all clients fund are in one bank(s) account. In case of FXCM, it is not all safe in last week event.

 

[i am nobody]

From what I have found out, at least in USA, client fund are separate from firm fund. But all clients fund are in one bank(s) account. In case of FXCM, it is not all safe in last week event.

You are client at a broker. But when I did my Series.... I learned that your money would be with a FCM (futures commission merchant). In that way brokers with financial problems cannot take money from clients. I knwo that my money is NOT with my broker, it is a FCM who takes care of my money. Normally you put money on your account by sending it to your FCM, not to your broker, and you mention your account number; But I don't know if that means that your money will stay your money in case of problems.


http://www.futuresindustry.org/downloads/PCF_questions.pdf

Customer Segregated Account. Funds that Segregated Customers deposit with an FCM, or that are
otherwise required to be held for the benefit of customers, to margin futures and options on futures
contracts traded on futures exchanges located in the US, i.e., designated contract markets, are held in
a Customer Segregated Account in accordance with section 4d(a)(2) of the Act and Commission Rule
1.20. Customer Segregated Funds held in the Customer Segregated Account may not be used to meet
the obligations of the FCM or any other person, including another customer.

All Customer Segregated Funds may be commingled in a single account, i.e., an omnibus Customer
Account, and held with: (i) a bank or trust company located in the US; (ii) a bank or trust company
located outside of the US that has in excess of $1 billion of regulatory capital; (iii) an FCM; or (iv) a DCO.
Such commingled account must be properly titled to make clear that the funds belong to, and are being
held for the benefit of, the FCM’s Segregated Customers. Unless a customer provides instructions to
the contrary, an FCM may hold Customer Segregated Funds only: (i) in the US; (ii) in a money center
country;3 or (iii) in the country of origin of the currency.