Futures traders: Be concerned, be very concerned

Futures trades and free market proponents everywhere in every market niche: Contact your member of Congress today.

Congress must immediately take action to fire CFTC Chairman Gary Gensler. The Commodity Futures Trading Commission has defaulted on its mandate to be the regulatory agency of the futures industry, including the oversight of Futures Commission Merchants (FCMs).

The media is missing the real story in the sad saga of MF Global. The story is not the big bet in Europe by MF Global that went south. The story is not the risk-taking ways of Jon Corzine.

The real story is the ineptness of federal regulators (so, what’s new). The real story is that speculators may end up holding an empty bag right under the noses of the U.S. government regulators responsible for their protection. The present administration appears unwilling to step up to the plate. The Obama administration bailed out AIG, Deutsche Bank, Fannie, Freddie and a whole bunch of other crooks along the way. But when it comes to protecting the integrity of futures markets, the powers that be (or should be) are MIA.

If segregated account holders of MF Global are stiffed it will be the end of market integrity as we know it. Free market lovers everywhere, do NOT under-emphasize the importance of this matter. The MF Global situation could be the leak in the dike that will flood the financial system as we know it. If segregated account holders in a federally regulated market are not protected, what is next?

Call your member of Congress today. To find out your members’ names and contact information, click here. Demand the immediate firing of Gary Gensler. He has made a fool of the system and himself in media appearances. He is incompetent to protect futures market participants.

Ask your members of Congress to intercede immediately. Obama wants to write a check out to unions for $460 billion as part of his “jobs” package, but will not step up to save the integrity of an important market that his administration should be protecting. Regulators seem to be running for cover at a time they need to take a stand. So what’s new? Who ever accused government regulators of being competent?

Act now. And alert your fellow traders. Stock traders, do not think your markets are safe. If segregated account holders in futures are sent adrift, what make you think you will be protected at the end of the day.

Continue to monitor this story at the web site of the Futures Industry Associaton.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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