Post-MF Global segregation reforms spark fierce debate
The failures of brokers MF Global and PFGBest have shaken the faith of commodity hedgers in their futures commission merchants (FCMs). But are regulators doing enough to protect customers from another FCM implosion? Alexander Osipovich reports
Halloween is usually a rather whimsical holiday, but in 2011 it struck genuine terror in the hearts of thousands of companies across the US. On October 31 of that year, New York-based MF Global, one of the country's largest futures commission merchants (FCMs), filed for bankruptcy – meaning that legions of farmers, metals traders, heating oil distributors and other commodity firms were suddenly unable to exit their hedge positions or access money held in their margin accounts.
Making matters
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