- Statement of Commissioner Bart Chilton Regarding MF Global and Customer Protection
On the eve of the Senate Banking Committee's hearing on MF Global, it's an appropriate time to reiterate my position on "job one" for the CFTC on consumer fund oversight. We need a belt and suspenders approach to customer protection in this country. Sure, we can and should do more from a regulatory perspective, and we are doing so. At the same time, we need to look at a legislative change.
The U.S. is the only major financial market in the world without some type of customer insurance fund protection for futures. In the United Kingdom and the European Union, in Australia and Hong Kong and Singapore, in South Africa and in Canada futures customers are better protected against losses than in our nation. We need to make a change for the better in this country.
Specifically, I continue to advocate an insurance-type fund for futures customers similar to what has existed for decades in the securities and banking worlds.
I first broached this concept last year in the wake of the MF Global debacle. It would provide better customer protection and not leave U.S. futures customers as the odd persons out in the global effort to adequately backstop customers.
There are myriad ways to approach this concept, and I look forward to working with Congress to develop the most effective means to give the investing public the confidence they need to continue to place their money in American financial markets.
Futures customers deserve our best efforts to protect their hard-earned dollars.