Refco raises further concerns

As the Refco bankruptcy case rumbles on, investors are wondering if more could have been done to prevent it, and in future, are likely to seek better assurances over the security of funds in segregated customer accounts

While the fallout from US brokerage Refco's bankruptcy filing looks set to be reasonably contained in terms of its effect on derivatives trading, it is likely to spur investors to demand greater reassurances about how their margining funds are being protected, say experts.

"For futures brokerage, it likely raises some anxiety about the security of funds in segregated customer accounts," says Shannon Burchett, president and chief executive of consultancy Risk Limited Corporation. "The assertion by