PFGBest bankruptcy fuels calls for stronger protection of customer funds

The sudden implosion of Peregrine Financial Group, commonly known by its brand name PFGBest, has rattled the commodities trading industry and reignited the debate over whether greater protection is needed for segregated customer funds held by futures commission merchants (FCMs).

On July 9, the industry's self-regulator, the National Futures Association (NFA), took an emergency enforcement action against PFGBest, revealing that it had discovered a shortfall of $220 million in a bank account that