If there is one solution to restoring customer confidence in futures that has been talked about more than any other, it would be the creation of a customer or insurance fund. Securities customers have the Securities Investor Protection Corporation (SIPC), so why can’t futures customers use SIPC as well? That’s the idea from Neal Wolkoff, Of Counsel at the law firm of Richardson & Patel and longtime exchange executive, who argues that not only does it make rational sense, but using SIPC could be the easiest and most cost effective way to protect futures customers. This approach differs from others who have touted some type of insurance protection fund just for the futures industry.

Also see — Protection Fund: Building a Better Piggy Bank

SIPC Style Insurance Fund Resources

  • Neal Wolkoff on MarketsWiki (link)
  • “Expanding the Role of SIPC” by Neal Wolkoff (link)
  • Securities Investor Protection Corporation (SIPC) on MarketsWiki (link)
  • Commodity Customer Coalition on MarketsWiki (link)
  • CCC Plan for Private Commodity Customer Account Insurance (link)
  • “Futures Industry Looks to Insurance After MF Global Collapse” (link)
  • “The Plan, Stan—Moving Forward on a Futures Insurance Fund” by Bart Chilton (link)
  • “Time for a Futures Insurance Fund: CFTC’s Bart Chilton” on CNBC.com (link)

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