NFA President and CEO Daniel J. Roth's Testimony on Peregrine Fraud

In his testimony before the United States Senate Committee on Agriculture, Nutrition and Forestry, Daniel J. Roth (i) reviewed the chronology of events surrounding the Peregrine fraud and (ii) outlined recommended changes that need to be made in the way customer funds are protected and the monitoring of firms for compliance with the rules. Most significantly, Roth recommends that FCMs be required to provide their customers a transparent means to view their margin held at the FCM, which would in turn be required to hold the collateral at a bank. Roth also recommended that regulators improve their audit procedures and that FCMs be subject to specified compliance procedures that would limit their ability to withdraw excess collateral from segregation.

View testimony in full here (links externally to NFA website).See also: August 1, 2012 CME Group Duffy news entry; August 1, 2012 Gensler and Sommers news entry; July 17, 2012 Gensler's Testimony news entry.