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Safeguarding Customers Through Segregated Funds

The futures industry’s rules for segregated funds help protect customer capital in the event of a brokerage bankruptcy**.

In recent years, many investors found out the hard way they have very little recourse to recover funds in the event of a financial firm’s bankruptcy. Although the Bernie Madoff “hedge fund” was by far the highest profile case, there were numerous less publicized bankruptcies and defaults at other firms and investments (including legitimate ones), in which investors found recouping remaining funds difficult or impossible. Sometimes it’s a case of being the last in line of a long list of creditors, a problem that’s compounded when customer funds aren’t separated from a firm’s funds. Such “commingled” funds might have been used to fund the firm’s operating expenses or in its own trading. If a firm enters bankruptcy, it can be very difficult or impossible to recover customer funds that were commingled in such a fashion.

However, all futures trading accounts, including managed futures, have the advantage of specific industry rules that require the segregation of customer funds from the firm’s own funds. The practice of segregating customer funds protects investors in the event of default at the Futures Clearing Merchant (FCM, the industry term for futures brokerage firms licensed to trade on futures exchanges in the U.S.) holding their account. While FCM bankruptcies are rare, they do occur. In 2005, Refco Inc. and 23 of its unregulated subsidiaries filed for Chapter 11 bankruptcy protection. However, Refco’s regulated subsidiaries (where customers’ futures trading and managed futures accounts resided) were unaffected and customers were able to continue trading and managing their accounts.

Investment Risk and Firm Risk

Although first-time managed futures investors might assume they’re depositing money directly with the Commodity Trading Advisor (CTA) running the fund, in fact, customers open an account in their own name at an FCM. The CTA is then given the authority to trade per the fund’s investment strategy. Segregated funds possess a separate identity from FCM funds in the firm’s bank account. Once funds are deposited, the bank signs a written acknowledgement stating it will not use the funds for anyone other than the customer. Also, the FCM is required to use these funds only in certain pre-defined instruments. The end result is that, in the event of a crash or FCM bankruptcy, customer funds can be more easily recovered.

FCM Reporting Requirements

Segregated funds are subject to stringent daily, monthly, and annual monitoring by industry regulatory agencies. Every day, FCMs must submit a report to the National Futures Association (NFA) detailing the breakdown of their customer funds. This “Segregated Investment Detail Report” (SIDR) lists the actual and expected segregated funds in the FCM’s accounts. In addition, every FCM must file monthly financial reports with the Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Intermediary Oversight (DCIO) within 17 business days after the end of the month. Finally, the FCM is subject to a yearly audit by the Joint Audit Committee, a consortium of U.S. futures exchanges and regulatory organizations.

CFTC oversight

The provision for segregated funds is stipulated in the Commodities Exchange Act. As a result, the CFTC, which is the futures industry equivalent of the Securities and Exchange Commission (SEC), regulates all practices for segregated funds. Any case of malpractice results in an administrative proceeding before a CFTC law judge. If an FCM is found guilty of the charges, the CFTC can suspend or revoke trading privileges, assess penalties, or issue cease and desist orders. There have actually been very few malpractice cases; most are the result of technical or processing difficulties within an FCM, or a delay in reporting. For example, the CFTC imposed a civil penalty of $300,000 in 2009 on a large FCM for violating rules related to segregation. Besides reporting process violations, the CFTC charged the company with not holding enough funds in its customer funds account. (The shortfall occurred because the FCM had purchased Treasury notes between 2007 and 2009 using a mix of its own and customer funds.) In response to the charge, the firm established a “segregation forecasting mechanism” to ensure that proper segregation was maintained between customer and company accounts. Before making any investment in futures or managed futures, investors should research the company where they plan to open an account. The NFA makes this research easy at the BASIC (Background Affiliation Status Information Center) section of its website.

Dean Hoffman

**MF Global

Source-CME Group

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You should understand from the beginning that when you take these types of medicine, there are often side effects. This ought to make you much more keen on finding natural supplements for anxiety attacks, because there are not the addiction issues found. There are other natural treatment tips you can follow too. Here are a few:

If you find yourself becoming frightened while having a panic attack, look around and try to rationalize whether there really is some immediate danger to be afraid of. Is anyone actually trying to hurt you? The answer will almost always be a resounding no, so take it easy and allow the fear to dissipate around you.

Avoid drinking alcohol if you have anxiety problems. Alcohol is a type of depressant, so it can really harm your mood. Alcohol and panic attacks are a dangerous, and potentially lethal, combination. Likewise, if you mix alcohol with any medications for your panic attacks, you are harming your body as this combination is very dangerous.

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Investing money is something that many people do, while others could also be scared to take part in with the recent economic downfall that was witnessed worldwide. The truth is that there’s nothing to be terrified of if you happen to perceive what is called wealth cycles and how they have predicted, with fair accuracy, the ups and downs of the investment market and make investments wisely. Investing money is just when you place your money somewhere that will provide you with some form of return on your investment that you just proceed to construct upon for financial safety and hopefully wealth.

The easiest approach to have a look at investing money is when you put aside monies in a savings account; the financial establishment provides you a small percentage of interest that increases the amount you deposited and continues to earn so long as you allow it within the account. Investing money is identical thing except you’re purchasing shares of an organization through which you receive dividends primarily based on firm earnings and hopefully an increase within the worth of the inventory you purchased. In some circumstances you could put money into something like oil where as the value goes up so does your investments value. Others may put money into real estate or valuable metals to reap the rewards when the cycles for these are at their peak.

You need to take note of wealth cycles before deciding where to invest your money. A wealth cycle will present that when real estate and the inventory market are on the rise then valuable metals will fall at the same rate. It would additionally present when valuable metals rise, the inventory market and real estate are actually falling. The secret is to promote or unload your investment when it’s at its peak as a way to purchase the choice that is at its low. Doing this lets you make investments and purchase more of the merchandise at the backside finish of its cycle. As the wealth cycle reverses over time and your investment increases in worth you repeat the process. Every time you do this you’re growing your own worth by a larger percentage charge than sitting on something and riding out the highs and lows for a small dividend or risking a loss.

There is another factor that you just want to concentrate on when investing money and that is typically the reason for the upturn of valuable metals during a wealth cycle. That factor is the federal government flooding the market with money to offset recessions. The problem with that is the worth of the greenback drops, the value of goods increases, folks purchase much less and stocks fall. At this point valuable metals enhance in worth as investors move in the direction of a tangible asset that will never attain a value of zero and the marketplace for gold and silver swings upwards while real estate and stocks lose value.

The wealth cycles over the last fifty years are very telling as to how an individual should invest. Our financial system was sturdy and our money was backed by gold bullion giving it an actual value. When The Nixon Shock occurred, a presidential decree that made it possible for our foreign money to no longer be backed with bullion, we started printing money at whim to change the economy. This left us in a climate that was now comparatively unstable with the worth of the greenback being determined by shopper demand and developments in technology. Treasured metals remained a nice possibility for those investing money. As our expertise increased, stocks started to soar and valuable metals fell to an all time low. People invested every part within the inventory market but grew to become greedy and held onto the investments too long till the bubble burst. When investing money you possibly can look now at the wealth cycle from the last ten years. Real estate, stocks and other commodities have been volatile and on the verge of collapse at totally different times. Treasured metals have risen steadily and outperformed other investments during this period. People who purchased these at rock bottom costs at the moment are sitting on a mound of money and valuable metals are nonetheless rising.

The point is it’s worthwhile to take note of the market as those with valuable metals at the moment are promoting and putting their money into stocks and other investments as they’re at their low end. As they enhance it’s all profit so long as you promote at the peak or on the upturn. Bear in mind if you happen to hold onto something past the peak you could have misplaced out on free money. It takes a number of persistence but it surely’s really not troublesome to see when it’s time to start investing money elsewhere. The point to investing is to make as a lot as you possibly can in any respect times. To do that you simply pay attention to what’s on the rise and what isn’t.

Proper now we’re looking at another real estate fall which can in turn cause valuable metals to once more rise. It might not occur in a single day but it would occur as the wealth cycle says so. You wish to purchase low, promote high, and don’t hold onto anything till you know how much you need to retire because the worth may not be there. The days of an organization having a growth that sends 10 greenback shares to a thousand dollars per share are probably never going to occur once more and why should others benefit out of your money before you do?

Investing money will not be as troublesome as you could believe. When purchasing stocks simply do your research and have a look at the trading trends. Is it a serious corporation just affected by the present financial system or is it an unproven high threat firm that thinks their widget will save the world? Simply use common sense and pay shut attention to the trends. Look at the past and what made investors money and when they need to have offered to prevent loss. It’s really not thoughts numbing or arduous when you have a look at wealth cycles and evaluate it to the economic roller coaster from the past few years. Before you understand it you will be efficiently investing money with a profitable philosophy and receiving giant returns for your future and that of your family.

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It hurts — Bad! Pay attention. Is this what you say when you have to get out of a chair, or is this what you hear when a loved one gets out of a chair? To handle back pain the right way, you need the right information. Use the information provided here to help take the pain out of back pain. You can start with lower back stretches.

When your back is hurting, lay down with knees and hips at a 90 degree angle. Placing yourself in this position can alleviate the stress placed on the back much more efficiently that alternate approaches. But, feel free to use whatever position feels most comfortable; just make sure you aren’t twisting your spine when you sit.

Try to drink about 62 ounces of water per day with your healthy diet. A proper diet does a lot of things for you, and prevention of back pain is on that list. Less pressure will be applied to your back if you lose weight, and certain nutrients are essential for a generally healthy body and good blood circulation. All these ideas will also help with lower back pain.

Back compresses can help to reduce or eliminate pain immediately. You can also put a wrap on your back which compresses and reduces your range of motion, and that helps to speed up the healing process. Do not make the wrap so tight that it is uncomfortable, but make it secure.

Muscle spasms will need to be eased if you are having serious back pain. Lay down and use a heat treatment on your muscles. Electrolyte balance is an important part of maintaining relaxed muscles, and you could benefit from drinking water and keeping sodium to a minimum until your muscles feel less tense. Dehydration can actually cause or worsen spasms, so lots of liquids and minimal salt can be beneficial.

Make sure you get the rest that your body and mind needs. Always make sure you have enough time in your schedule to sleep. Lie down with pillows placed under your legs. Stretch and relax for a couple of minutes. Learn to listen to your body when it tells you to rest and you can avoid most back pain.

One way to protect your back is to ensure that your diet includes adequate amounts of calcium and vitamin D. Lacking in these essential minerals and vitamins will result in bone depletion. A deficiency of essential vitamins and minerals can lead to deterioration of bones. Eat foods rich in calcium, get adequate sunlight and take any necessary supplements. The reward will be a healthier back.

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The positive aspect of custom shirts is their quality to focus on the consumer or user themselves. A great way of getting comfort, uniqueness, and style is by buying dress shirts made. As everyone knows, there are so many types of body shapes. Most people are a different size and form, yet people often think the normal three regular sizes of small, medium, and large is perhaps all we need. Clothing brands do try to adjust this sizing to match more people, however by simply only adding a few extra sizes it really doesn’t do the job justice.How about individuals who consider themselves as a medium? Is there sizes called “extra medium?”. The point being that despite the fact that individuals can fit in these basic types, these typically give up their comfort and sometimes style just to fit in ready-made shirts. Customizing a shirt enables you to possess a comfortable fit with out compromising the look and style you desire. An interesting option would be getting mens shirts at a tailor.

If you truly want to get the attention of your target group in a big way, then you should place a lot of emphasis on getting top notch graphic designs for your website. This article will address some ways in which you can outsource your graphic design work and receive premium results without having to pay a fortune. It comes down to custom shirts for great style! Remember to Consider Copyrights: Whenever you’re dealing with graphic design, you have to keep copyright issues in mind. This is an issue you have to clarify before you enter into any contracts with freelancers. It’s essential that, when you pay to have graphics created for you, that the copyright for this work is transferred to you. When you hire freelancers through mainstream sites, this shouldn’t be a problem, as this is spelled out in the contracts everyone signs. If you’re not using a freelancing site, however, it’s necessary to agree on this matter with the person or company you’re dealing with. You may be hiring people from anywhere in the world, and not all countries have the same laws on these matters, so make sure you agree to this in writing. Understand their Profile: If you want to know that you are hiring the correct designer, it is imperative that you look at their profile and decide if they are the right one. Are you convinced that they can handle the job? Do they look professional enough to handle your graphic design work? Is the quality up to what you’re expecting? Can you interact with a person with this sense of style and attention to quality? It is very important that you feel comfortable with each of these questions before you hire anyone because it will help you during the selection process. Besides, it is your investment and you do not want to see it go down the drain by getting the wrong person. You want to know more about Custom Shirts, but the other important side of the coin is that you have to get up and move on it. If you want a little advice, as soon as you are done reading this then do not stop; immediately get to work. It seems so many people have a sincere desire to do something, but they fall in the trap of just sitting there and wishing. As you well know, even though overcoming inaction can be tough at first, once you just get started will make all the difference. Everybody with a need to know this information can do something with it, just make sure you are one who does. After saying all of that, it is time to move forward. Use other Graphics as Examples: There are many times in which we locate graphics that give us the idea to create other things. If you see example designs that your own graphic designer can get ideas from, then this is very good for you. This will help you achieve two things. First, it lets you get a professional design done that relates to your choice. And secondly, your graphic design will be original even after being inspired by another design. So it’s definitely something that can help you get a better job done. Learning how to effectively outsource your graphic design tasks can go a long way in making your website, landing page or blog more appealing and profitable.

Trustworthy Nashville Moving Companies – The most important thing on people’s minds when hiring moving companies in TN is whether or not they are legitimate companies and how they can avoid being scammed. There are a few things you can do during the hiring process to help you avoid any scams and to help you find trustworthy companies that are there to help you out. Moving companies in Nashville that are reliable may seem difficult to find but as long as you know what to look for you will be able to avoid any problems and be completely happy with your decision. If you are worried about finding Memphis Moving Companies online, then you should avoid the internet completely. You can ask friends or relatives if they have recently used moving companies in Memphis that have done an extraordinary job and who they would recommend for you to use. You can also ask your local real estate agent. They deal with moving every single day and will probably know of at least one or two great companies in your area. This will help you get a list of companies to go off of when you are deciding to hire moving companies in Memphis. Once you have a hand full of moving companies in Milwaukee, you will want to have them all come to your home for an in home estimate. This is the most accurate way to get an estimate as they will be looking at all of your possessions and determining how long the job may take and how many men it will take to get it done. This is also a great time for you to ask the representative any questions you may have about their company. You need to have more than two estimates so that you will be able to compare the different prices and different services to determine which one will be best for you. The next step is to ask the company for their full name and DBAs they may be using. This will allow you to go online and verify with the Secretary of State’s website that the moving companies in Milwaukee are properly licensed and that they are a legitimate company. You can also go to the Better Business Bureau’s website to see if any of the moving companies have had any complaints made against them. If they have several complaints that haven’t been resolved, it may be in your best interest to move onto another company that doesn’t have those problems. Finding trustworthy Milwaukee Moving Companies may seem like a pain, but as long as you do your research and know what to look for it can be an easy task. So ask around to see if anyone you know can recommend a company. Make sure that the moving companies in Milwaukee do an in home estimate and verify all of their information online with the Secretary of State’s website. These few tips will help you avoid any major problems with the company you decide you hire. That way, you will be able to relax a little bit and enjoy your move and your new home, knowing that you have found a trustworthy company.

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