CFTC Chairman Gary Gensler and Commissioner Jill Sommers Testify before the U.S. Senate Committee on Agriculture Re: MF Global, Peregrine, and the Oversight of FCMs
Chairman Gensler's testimony focused on:
- the failures and oversight of MF Global and Peregrine Financial;
- CFTC customer protection reforms to date and forthcoming reforms;
- CFTC restructuring regarding the oversight of SROs and intermediaries; and
- Gensler wanting to increase the CFTC's budget.
Commissioner Sommers testimony focused on a description of the bankruptcy procedures:
- bankruptcy proceedings for firms that are dually registered as broker-dealers and FCMs;
- coordination of the CFTC with the SIPA trustee in charge of the broker-dealer bankruptcy;
- current CFTC protections for customer funds;
- CFTC oversight of FCMs; and
- ongoing investigations concerning the shortfall of customer funds.
We had reported yesterday testimony that it was expected that all customers of MF Global would be made whole.
View Chairman Gensler's speech here.View Commissioner Sommer's speech here.