The trading contest I am in is being run thru PFG Best.
I have no idea how the e-mail I received below will impact the contest, but I do not think it will be good...
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Monday, July 9, 2012
Due to a recent emergency involving Russell R. Wasendorf, Sr., a suicide
attempt, some accounting irregularities are being investigated regarding company
accounts. PFGBEST is wholly owned by Mr. Wasendorf. Therefore, the NFA and
other officials have put all funds on hold, and PFGBEST is in liquidation-only
status with our clearing FCM. What this means is no customers are able to trade
except to liquidate positions. Until further notice, PFGBEST is not authorized
to release any funds. We will update you as any new procedures are stipulated
and with any further information as it becomes available.
That is crazy! I hope this, along with the MF Global fiasco from last Fall, force regulators to actually regulate so customer funds are NEVER at risk except via our own trading decisions!
ReplyDeleteCrazy is right. The funny thing is that the NFA, CFTC and futures industry in general was pretty heavy on the high-fiving and back slapping after the 2008 Financial Crisis, when no futures firm imploded. I remember hearing it was in large part because of self regulation, and customer segregated accounts.
ReplyDeleteI suspect SIPC-type protection is around the corner. And of course, we will pay a few pennies per contract for the privilege of not having crooks steal our money!
Not every day you get to demonstrate the effect of the illustrious black swan. Pretty untimely visit as well.
ReplyDelete