Insurance against losses for U.S. futures customers may be feasible, according to a study commissioned after MF Global Holdings Ltd. and Peregrine Financial Group Inc. collapsed.
The study, commissioned by CME Group Inc., the Futures Industry Association, the Institute for Financial Markets, and the National Futures Association, surveyed private insurance companies to gauge their interest in providing protection to customers if their futures broker goes bankrupt, according to a statement released today.
A group of eight insurers expressed interest in forming a consortium to provide coverage. When a futures firm fails, as much as $300 million in customer funds would be protected under the insurers' proposal, with the first $50 million of losses funded in part by brokers.
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