By: DeWayne Reeves
Recent bankruptcies and failures of PFG and MFG have made execution and rates just a part of the search for a commodity brokerage. Now it is vital to know the features of the firms themselves. For years, brokers have relied on the CME's Safeguards in the CME brochure that described the step-by-step process for the financial failure of a commodity firm. The trading world was not prepared for default based on theft and manipulation by a trusted figure in the trading world. Trust is what the exchanges thrived on for years, along with the intensive background checks of the floor brokers and the financial requirements to weed out only the elite candidates for membership to the exchange. Falsifying bank records, which actually affected the holding accounts of the firm, was a shock to the trading world. Continue reading "Firms That Fail: What to Look For in an FCM"