Derivatives Clearing Organizations. That is exactly what INT FCStone is. Although INT FCStone had been fined $1.5 million and the firm lost $127 million of its own money in 2008 and 2009, the CFTC has done nothing in this current case, as I reported on a previous blog post on this website.
Rather than clean up its act, INT FCStone doubled down and billed the innocent investors when OptionSellers went broke in November 2018. Although I have made some FOIA requests to the CFTC, I have been unable to get a response that quantifies the investor losses in this latest debacle.
However, this June 28, 2019 press release offers some hope.
” CFTC Extends Public Comment Period for Proposal to Amend Derivatives Clearing Organization Regulations
Washington, DC — The Commodity Futures Trading Commission (CFTC) announced today that it is extending to September 13 the comment period for the proposed rulemaking to amend certain regulations that apply to derivatives clearing organizations under Part 39 of the CFTC’s regulations.
The proposed amendments would, among other things, address certain risk management and reporting obligations, clarify the meaning of certain provisions, simplify processes for registration and reporting, and codify existing staff relief and guidance. The original comment period for the proposed rulemaking was to expire on July 15.
Notice of the extension will be published in the Federal Register shortly. All comments will be posted on the CFTC’s website. ”
I have filed some FOIA requests to the CFTC to find out if the Agency has quantified the losses, but I have received no response except to acknowledge my request.
The only offer of real help came from the Federal Bureau of Investigation. On October 14, 2018 I received a letter from Laura Riso, Victim Specialist of the FBI, DOJ. It said that she understood that I was the victim of a financial crime. It is incredible to me that the FBI is doing the job of the CFTC.
I hope that other investors who have lost in this debacle will contact their members of Congress, especially their Senators, and ask for Congressional oversight.