NFA says PFGBest can’t meet customer obligations

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From Futures Magazine:

NFA says PFGBest can't meet customer obligations

By Press Release

July 9, 2012 • Reprints
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July 9, Chicago - National Futures Association (NFA) announced today that it has taken an emergency enforcement action against Peregrine Financial Group, Inc. (PFG), an NFA Member futures commission merchant (FCM) and Peregrine Asset Management, Inc. (PAM), an NFA Member commodity trading advisor (CTA) and commodity pool operator (CPO) located in Chicago, Illinois.

NFA has taken the Member Responsibility Action (MRA) to protect customers because PFG has failed to demonstrate that it meets capital requirements and segregated funds requirements. NFA also has reason to believe that PFG does not have sufficient assets to meet its obligations to its customers.

Effective immediately, PFG and PAM are prohibited from soliciting or accepting any additional customer accounts or customer funds, except as margin for existing positions. Additionally, PFG and PAM are prohibited from accepting or placing trades for any customer accounts except for the liquidation of existing customer positions and are prohibited from distributing, disbursing or transferring any funds, including to existing customers, without the prior approval of NFA.

PFG and PAM may request a hearing on this matter before NFA's Hearing Committee.

The complete text of the MRA is available on NFA's website (

NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.

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About James Koutoulas 209 Articles
Co-Founder and lead attorney of the CCC, CEO of Typhon Capital Management and Typhon Securities.

1 Comment

  1. PFG’s customers have been embezzled out of 50% of their funds. Compare that to the 700 accounts who, after suffering embezzlement at MF Global, were transferred to PFG to be embezzled again for a total embezzlement of 60% of their original funds. Which would be the next firm whose fraud is revealed? What if fraud is not exclusive of futures brokers but it also permeates the bowels of grain warehouses and metals vaults?

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