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Congress should explore insurance fund for futures, CFTC Wetjen says

Nov 02 2012 Reuters

Commodity Futures Trading Commissioner Mark Wetjen said on Thursday an insurance fund for futures traders is "worth exploring," raising the profile of a customer-protection concept that gained new life after MF Global failed one year ago. The futures industry has debated the merits of a government-sponsored insurance fund for futures traders, modeled after the Securities Investors Protection Corporation (SIPC), and an industry-sponsored bailout fund since MF Global's collapse revealed more than $1 billion missing from customer accounts. Neither response would prevent a broker's misuse of customer funds, as happened with MF Global. The brokerage, led by former Goldman Sachs chief and New Jersey Gov. Jon Corzine, failed after revelations that it had made a bad bet on European sovereign debt sparked a liquidity crunch. However, some type of insurance could help restore shattered faith in the industry, helping allay fears that money parked at futures brokerages is not safe,

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