The financial industry is in an almost-constant battle to soothe investors unnerved by recent scandals. Monday brought another example.
The CME Group said it was exploring the idea of having brokerages separate their customers’ money from their own funds, keeping the customer money in a clearinghouse or other type of separate depository. The idea was floated in a letter to customers.
The CME Group’s suggestion comes as the collapse of two brokerages, MF Global in October and Peregrine Financial Group this month, are still fresh. In both cases, customer money disappeared by the time the companies filed for bankruptcy protection.
Source: Yahoo Finance News