Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   

Agricultural News


National Pork Producers Council Urges Congress to Bolster Confidence in Futures Market

Mon, 19 Dec 2011 15:55:37 CST

National Pork Producers Council Urges Congress to Bolster Confidence in Futures Market Pointing out that pork producers depend on risk-management tools, including futures contracts, to deal with the volatility in feed grain and hog prices, the National Pork Producers Council today urged Congress to bolster confidence in the futures market in the wake of the MF Global bankruptcy.


In written testimony submitted for the record today to the Senate and House agriculture committees and to the House Financial Services Committee, NPPC said most producers were unaware of their connection to MF Global and were stunned to learn in early November, when the clearing broker filed for bankruptcy, that their futures accounts were frozen and funds were "missing." (As much as $1.2 billion of customer funds may have been comingled with MF Global money and used to buy risky European debt.)


Pork producers who produce at least 20 percent of U.S. hogs had funds with MF Global. Most, if not all, of them, however, did not deposit their funds directly with the clearing broker. They opened futures trading accounts with an "introducing" broker, which put the funds into MF Global.


NPPC raised in its testimony a number of questions about the MF Global situation:

Are there mechanisms that can be put in place to prevent another MF Global?

Will customers be given priority in the bankruptcy proceedings to recover funds?

Will producers whose funds were with MF Global be made whole?

How will the transfer of funds from MF Global to new accounts with other clearing brokers be treated by the Internal Revenue Service?

Will actions be taken to simplify and expedite claims to recoup funds?



The organization also offered a number of possible ways to prevent customer futures accounts from being compromised, including:

Impose stiffer criminal and/or civil penalties for misuse of customer accounts.

Require brokers to obtain permission before using customers' funds for purposes other than customer transactions.

Extend to commodities exchange customers insurance similar to that provided to securities investors through the Securities Investors Protection Corporation.

Require other financial tests and additional audits of brokers and dealers by governmental and non-governmental entities.



   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Oklahoma Youth Expo Sale of Champions Sale Order Available Here- Sale Set for 4 PM Friday  Fri, 17 Mar 2023 04:50:54 CDT
  • Rural Voters Dominated Vote to Defeat Recreational Marijuana March 7th  Fri, 10 Mar 2023 07:13:05 CST
  • Ron Hays Talks to Israeli Ag Tour Guide Colin Lotzof About the Miraclel of Ag in Israel  Wed, 22 Feb 2023 22:11:04 CST
  • OALP Members Experience First Hand View of Cutting Edge Drip Irrigation Technology as Israel Travel Ends  Wed, 22 Feb 2023 10:51:49 CST
  • OALP Members Get First Hand View of Cutting Edge Drip Irrigation Technology as Israel Travel Ends  Wed, 22 Feb 2023 10:50:10 CST
  • Oklahoma Ag Leadership Program Sees Fruit, Beef and Dairy Production North of the Sea of Galilee in Israel  Mon, 20 Feb 2023 21:56:02 CST
  • Oklahoma Ag Leadership Program Sees Diverse Farm Operations in Jordan River Valley of Israel  Sun, 19 Feb 2023 21:17:30 CST
  • Israeli Tour Guide Mark Kedem Talks About The Cultural Aspects of What Class XX of OALP is Experiencing   Sat, 18 Feb 2023 22:17:23 CST

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Oklahoma City Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.
       
       
       
       
       
       

    Search OklahomaFarmReport.com

    © 2008-2023 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.