NAMA urges Congress to limit futures market risk
WASHINGTON — The North American Millers’ Association in a Dec. 7 letter to Congress has called for action on limiting futures market risk to millers and other futures market participants. “Millers and other futures contract participants are experiencing a crisis of confidence in the markets as a result of the MF Global situation,” NAMA said. MF Global is a major global financial derivatives broker that filed for bankruptcy in October. In its letter, NAMA urged several actions, including having the Commodity Futures Trading Commission “immediately enact rules requiring customer segregated funds be kept in escrow accounts, in cash or very liquid government-backed instruments,” calling for a study to examine the creation of an industry insurance fund to cover commodity futures contracts, and requesting a complete review of C.F.T.C. audit procedures. The full letter is available at www.namamillers.org.