On the Front Lines
I love the futures industry! I find myself as one of the truly blessed people who have had an opportunity to be in every aspect of the business: Broker, trader, CEO, BOD of CME Etc…I know you, and many on the BOD of the CME Group, feel the same as I do. The business has fed my family and given me, and my children, financial security. In the 30 years I have been in the industry I have witnessed, first hand, the business withstand attack after attack and have found myself on the front lines fighting off the misguided public opinion. But now I find that the enemy is no longer a finger out of DC or the regulatory mountain I must require my brokers climb in order to be compliant, no…The enemy is within!
Over the last 7 years I have been lucky enough to not lose a penny on the thousands of retail customer accounts that my team has serviced. (Thank you electronic trading) but I can honesty say I have lost millions of dollars by the fraud contrived by Refco, MF and now PFG. As one of PFG’s largest IIB’s we had an estimated $20 Million sitting on their books. These were ALL retail accounts. So now we must call every one of the accounts we had at PFG and let them know that their money was stolen…AGAIN! It is insane that I have more risk with an FCM then with a client. What happened to the fiduciary responsibility associated with being an FCM?
I know there are a lot of solutions being thrown around and, not being privy to the details, realize there are no easy answers. But I beg you and the Board to please do something, anything, to help us on the front lines maintain what little credibility we have left. We had 600 accounts at Refco, 400 accounts at MF and roughly 300 at PFG…At this rate there will be no retail business left. Now is the time to be proactive and shape the new customer protective measures in a way which maintains the SRO and allows the CME to play hero.
Make no mistake, I am furious!…My anger is aimed at the CFTC, NFA (I wonder if I can ask for my fees back?) and those who were in charge of watching my customers’ hard earned money. Terry…This must stop!
Thanks for letting me vent…As always, I am at your service,
Very truly yours,