A proposal for the creation of a “futures insurance fund” is being pitched by Commodity Futures Trading Commission member Bart Chilton.
Chilton, who announced his plan on Thursday, has floated the idea since the collapse of MF Global last November. He sees such a fund as operating similar to the banking insurance (up to $250,000) provided through the Federal Deposit Insurance Corporation (FDIC) and similar protections offered to investors through the Securities Investor Protection Corporation (SIPC) Fund when a broker-dealer is in liquidation.
