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.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.