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Was just reading this article on Zero Hedge called "Why The UK Trail Of The MF Global Collapse May Have "Apocalyptic" Consequences For The Eurozone, Canadian Banks, Jefferies And Everyone Else". I cannot post the link since I am new here and I need 5 posts to post links. The article was posted on December 7th, 23:06.
This bit, among others, caught my attention since I was just about to open a futures trading account.
So i went to check into all the customer agreements of Interactive Brokers (I started an application with them before trying out Mirus Futures) when you create a new account and sure enough, this passage was found in the last agreement before completing the account creation process.
On december 6th, I started an application at Mirus Futures (after reading many user feedback here, on futures.io (formerly BMT)'s forum) and I have also saved all of their agreements. The chosen clearing firm was Dorman Trading in this case. This excerpt can be found in "Futures Customer Agreement" while creating an account with Mirus Futures.
I'm quite worried about opening a futures trading account at all now.
Being a CEO in a company, being in charge of bets of Billions of value and finally telling: I do not have any f**** ing idea where any money went to protect my bets it just ridiculous.
How the hell does he think how stupid people out are there?
And even he may could say:
I only did what the law allows: That would be the worst any system could do to his residents.
God protect America and its residents and the whole world from such laws.
I watched part of his testimony in front of congress yesterday. He essentially gave the three monkeys defense, I did not see, I did not hear, I don not know what happened to the money!
In the testomoney it came out, John Corzine locked horns with MF Globals risk manager, essentially forced him to leave early part of this year. also threanted to resign if the board didn't go along with his european bets.
Some of the congressmen asked that he is a man of great wealth, would he make the accounts whole from his personal wealth! I think bad things, as in financial ruin via lawsuits await Corzine...
in the IB account line of your post it says
..for any amount due IB in any IB account in which Customer has an interest.
So my reading of this is that it is only if you owe them money.
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However, above and beyond the actual agreement my opinion of the reality for all futures firms is
"we have the right to steal any money you have and will ignore all rules and regulations of the FCA, CME and anyone else that we are supposed to follow - because we have lots of lawyers and no morals whatsoever."
The money in customer accounts was never an asset of MFGlobal. According to their own 10K annual report they have to balance on a daily basis with the CME. The "segregated accounts" is just something they laugh at.
(re "missing" customer funds.)
If you get a small firm and find a broker that will hold your check until you make about a trade and then wire or mail you your entire account balance at the close of the trade - like each day - then hide your money in a mattress you may have a chance of not being robbed.
The trustee is the same firm that milked the Lehman bankruptcy for 144million - so they'll milk this thing forever chalking up enormous fees for themselves.
I have growing concerns that every bank does this and that my money wouldn't be safe anywhere.
Been thinking about turning all my paper money into physical precious metals, but then I will have a whole new set of headaches with the storage/hiding practices.